Coupon Accepted Successfully!


Mispresentation means a false representation of facts made innocently or non-disclosure of a material fact without any intention to deceive the other party.
Essential Elements Of Mispresentation
  • It must be a representation of material fact, mere expression of opinion does not amount to mispresentation even if it turns out to be wrong.
  • It must be made before the conclusion of the contract with a view to induce the other party to enter into the contract.
  • It must have been acted upon and must have induced to enter into a contract.
  • It must be wrongful representation but the person who made it honestly believed it to be true.
  • It must be made without any intention to deceive the other party.
  • It need not be made directly to plaintiff. A wrong statement of fact to a third person with the intention of communicating it to the plaintiff also amounts misrepresentation.

Effects Of Misrepresentation

A contract induced by misrepresentation is voidable at the option of the aggrieved party. The aggrieved party has the following remedies:


The aggrieved party can avoid or rescind the contract.

The aggrieved party can insist upon the performance of the contract on the condition that he sell be put in the position in which he would have been if the representation made had been true.

Loss Of Right Of Rescission [Case Where Contract Remains Valid Even After Misrepresentation Or Fraud]


The aggrieved party loses the right to rescind the contract for misrepresentation and fraud if:

He, after becoming aware of the misrepresentation or fraud, takes a benefit under the contract or in some other way affirms it.

Where the consent of a party to a contract is caused by misrepresented of fraud and that the party could discover the truth by ordinary diligence.

If restitution in integrum i.e., restoration to the original position, of the parties is not possible.

Where before the contract is rescinded, a third party has acquired rights in good faith and for value.


Mistake is an erroneous belief in something.

The mistake can be of two types:


1.  Mistake of law

2.  Mistake of fact

Mistake Of The Law Of The Country

ignorantia juris non excusat, i.e. ignorance of law is no excuse. Every one is supposed to know the law of his country. Thus, a mistake of law of the country is no excuse, and the contract remains valid.

Mistake Of Law of A Foreign Country

Such mistakes are treated as mistake of fact.

                               MIATAKE OF FACT    



BILATERAL MISTAKE                                                  UNILATERAL MISTAKE

Bilateral Mistake:

Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, there is a bilateral mistake. In case of bilateral mistake, the agreement is VOID. The following conditions should be fulfilled to declare an agreement void under this section:

The mistake must be mutual, i.e., both the parties should misunderstand each other.

The mistake must relate to a mater of fact essential to the agreement. However, an erroneous opinion as to the value of a thing which forms the subject-matter of an agreement is not to be deemed a mistake as to a matter of fact.

Bilateral Mistake As To The Subject Matter:

An agreement is void when there is a bilateral mistake as to the subject matter. A bilateral mistakes as to the subject matter includes:
  • Mistake as to the existence of the subject matter
  • Mistake as to the quantity of subject matter
  • Mistake as to the quality of subject matter
  • Mistake as to the identity of the subject matter
  • Mistake as to the price of the subject matter
  • Mistake as to the title of the subject matter

Unilateral Mistakes

When in a contract only one party is mistaken regarding the subject matter or in expressing of understanding the terms or legal effects of the agreement, the mistake is unilateral mistake. Contracts under unilateral mistake remain VALID.


In case the following mistake is fraud or misrepresentation contract will be VOIDABLE.

In the following two cases of unilateral mistakes contract is treated as VOID.

Mistake as to the identity of the person contracted with: Where the identity of the contracting party is important.

Mistake as to the nature of contract

If a person enters into a contract in the mistaken belief that he is signing a document of a different class and character altogether.

Test Your Skills Now!
Take a Quiz now
Reviewer Name