4 Most Important Differences between Fraud and Misrepresentation are listed below:
Misrepresentation:
1. A false statement of facts believing it to be true, without an intention to deceive the other party
2. Misrepresentation is innocent or unintentional.
ADVERTISEMENTS:
3. If the aggrieved party had the means to discover the truth with ordinary diligence, contract will not be voidable.
4. The other party can rescind the contract but cannot claim damages.
Fraud:
1. A misrepresentation of facts with full knowledge that it is not true, with an intention to deceive the other party.
2. Fraud is a willful misrepresentation or concealment of facts to defraud the other party.
ADVERTISEMENTS:
3. The contract will be voidable on account of fraud even if the aggrieved party could discover the truth by ordinary diligence except when it is on account of fraudulent silence.
4. The aggrieved party can set aside the contract and can also claim compensation for any loss or damages suffered by it.