REPCO

 

2. Interpretation-clause.—In this Act the following words and expressions are used in the following

senses, unless a contrary intention appears from the context:—

(a) When one person signifies to another his willingness to do or to abstain from doing anything,

with a view to obtaining the assent of that other to such act or abstinence, he is said to make a

proposal;

(b) When the person to whom the proposal is made signifies his assent thereto, the proposal is

said to be accepted. A proposal, when accepted, becomes a promise;

(c) The person making the proposal is called the “promisor”, and the person accepting the

proposal is called the “promisee”;

(d) When, at the desire of the promisor, the promisee or any other person has done or abstained

from doing, or does or abstains from doing, or promises to do or to abstain from doing, something,

such act or abstinence or promise is called a consideration for the promise;

(e) Every promise and every set of promises, forming the consideration for each other, is an

agreement;

(f) Promises which form the consideration or part of the consideration for each other are called

reciprocal promises;

(g) An agreement not enforceable by law is said to be void;

(h) An agreement enforceable by law is a contract;

(i) An agreement which is enforceable by law at the option of one or more of the parties thereto,

but not at the option of the other or others, is a voidable contract;

(j) A contract which ceases to be enforceable by law becomes void when it ceases to be

enforceable.

CHAPTER I

17. “Fraud” defined.—“Fraud” means and includes any of the following acts committed by a party

to a contract, or with his connivance, or by his agent2

, with intent to deceive another party thereto of his

agent, or to induce him to enter into the contract:—

(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;

(2) the active concealment of a fact by one having knowledge or belief of the fact;

(3) a promise made without any intention of performing it;

(4) any other act fitted to deceive;

(5) any such act or omission as the law specially declares to be fraudulent.

Explanation.—Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak3 , or unless his silence is, in itself, equivalent to speech.