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1.What is the difference between fraud and misinterpretation? What do you
understand by mistake?
Ans. Fraud is generally defined in the law as an intentional
misrepresentation of material
existing fact made by one person to another with knowledge of its falsity
and for thepurpose of inducing the other person to act, and upon which the
other person relies withresulting injury or damage. Fraud may also be
made by an omission or purposeful failureto state material facts, which
nondisclosure makes other statements misleading.
Misrepresentation means a false statement of fact made by one party to
another party,
which has the effect of inducing that party into the contract. For example,
under certaincircumstances, false statements or promises made by a seller
of goods regarding thequality or nature of the product that the seller has
may constitute misrepresentation. Afinding of misrepresentation allows for
a remedy ofres cis s ion and sometimesdamagesdepending on the type of
misrepresentation.
Difference between fraud and misinterpretation:-
1.In misrepresentation the person making the false statement believes it to be
true.In fraud the false statement is person who knows that it is false or he
does not careto know whether it is true or false.
2.There is no intention to deceive the other party when there is
misrepresentation of
fact. The very purpose of the fraud is to deceive the other party to the
contract.
3.Misrepresentation renders the contract voidable at the option of the party
whoseconsent was obtained by misrepresentation. In the case of fraud the
contract isvoidable It also gives rise to an independent action in tort for
damages.
4.Misrepresentation is not an offence under Indian penal code and hence
notpunishable. Fraud, In certain cases is a punishable offence under Indian
penalcode.
5.Generally, silence is not fraud except where there is a duty to speak or
therelations between parties is fiduciary. Under no circumstances can
silence beconsidered as misrepresentation.
0.The party complaining of misrepresentation can¶t avoid the contract if he had
themeans to discover the truth with ordinary deligance. But in the case of
fraud, Theparty making a false statement cannot say that the other party
had the means todiscover the truth with ordinary deligance.
MISTAKE
Amis take is an erroneous belief, at contracting, that certain facts are true.
It may beused as grounds to invalidate the agreement. Common law has
identified twodifferent types of mistake in contract: "unilateral mistake" and
"mutual mistake,"sometimes called "common mistake."






Many states utilize a mix of statutory and common law to provide

remedies for breach of contract. Depending on the contract and
circumstances of the breach, you may have several basic choices
of remedies. There are two general categories of relief for breach
of contract: damages and performance. Damages involve seeking
monetary compensation for a breach of contract. Performance
involves forcing the other side to do what they originally
promised in the contract agreement. An c
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c 

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c can help you decide which direction
is best for your breach of contract dispute.

Monetary Damages for Breach of Contract

^efore you file a breach of contract lawsuit, you should know

which type of remedy you are seeking. Many people simply want
monetary compensation for the grief caused by the other party¶s
breach of contract. Types of damages for breach of contract
include:

6 ºompensatory Damages - money to reimburse you for costs

to compensate for your loss
6 ºonsequential and Incidental Damages - money for losses
caused by the breach that were foreseeable (foreseeable
 damages are when each side reasonably knew that--at the
time of the contract--there would be potential losses if there
was a breach
6 Attorney Fees and ºosts - only recoverable if expressly
provided for in the contract
6 ‰iquidated Damages - damages specified in the contract that
would be payable if there is a fraud
6 Punitive Damages - money given to punish a person who
acted in an offensive and egregious manner in an effort to
deter that person and others from continuing to act in this
way. You generally cannot collect punitive damages in
contract cases.

The controlling law, the conduct of the violating party, and the
extent of harm you suffered can influence which of these
damages for breach of contract will be awarded in your situation.
The more egregious and intentional the behavior, the greater the
chance you have of being awarded larger, punitive damages. If
the breach was unintended and arose from negligent behavior,
you will probably receive compensatory or consequential
damages.

·equesting Performance of the Contract

uometimes money just cannot fix the problem. Instead of asking

for damages, you can also seek actual performance or
modification of performance of the original contract. Performance
remedies for breach of contract include:

6 upecific Performance - a court order requiring performance

exactly as specified in the contract; this remedy is rare,
except in real estate transactions and other unique property,
as the courts do not want to get involved with monitoring
performance
6 ·escission - the contract is canceled and both sides are
excused from further performance and any money advanced
is returned
 6 ·eformation - the terms of the contract are changed to
reflect what the parties actually intended

Pursuing Appropriate ·emedies for Breach of Contract

uome of these remedies for breach of contract may be limited by

the contract. ^efore you file a lawsuit, you should review your
contract for any limitations or notice requirements contained
within your contract so that you do not accidentally waive any
contractual remedies. Enforcing a contract with a lawsuit can be
expensive. ^efore you make a final decision on which remedy you
want to pursue and how you intend to obtain it, you should
consider the cost-effectiveness of full litigation. Instead of
jumping into a lawsuit, it may make more sense for the parties to
agree on a form of c c   
 
 such as
direct negotiation, c 
 or c c 
. These avenues for
obtaining a remedy may be more cost effective than simply filing
a lawsuit and letting the court settle the dispute. Many
communities now offer mediation and arbitration services for a
nominal fee.

If the breach of contract dispute involves a significant amount of

damages, a wise option would be to retain an  


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c
 to help you propose settlement terms and to
review any proposed settlements in advance. They can also help
you draft pleadings so that you do not omit requests for certain
remedies which you are entitled to by law or by contract. Even if
you do not use an attorney to file a lawsuit, you may want to
consult with an attorney to help you draft and finalize settlement
documents. If your settlement does not include the particular
remedy for breach of contract that you were seeking, you can
accidentally forfeit your right to those remedies or damages.




¦he difference between a guarantee and an indemnity
 antroduction
Guarantees and indemnities are both long established forms of what the
law terms suretyship. There are important legal distinctions between
them.

What is what?

A guarantee is a promise to someone that a third party will meet its

For example: obligations to them ³if they don¶t pay you, I will´
a promise to be responsible for another¶s loss, and to
An indemnity is
compensate them for that loss on an agreed basis
³if it costs you more than £250 to fix that, I will
For example:
reimburse you the difference´.

Section 4 of the venerable Statute of Frauds Act 10 requires

guarantees to be in writing if they are to be enforceable. There is no such
requirement in the case of an indemnity, although of course written
agreement is always best as a matter of practice and for proof.

Further, a guarantee provides for a liability co-extensive with that of the

principal. In other words, the guarantor cannot be liable for anything more
than the client. The document will be construed as a guarantee if, on its
true construction, the obligations of the surety are to ³stand behind´ the
principal and only come to the fore once an obligation has been breached
as between the principal and the financier. The obligation is a secondary
one, reflexive in character.

An indemnity however, provides for concurrent liability with the principal

throughout and there is no need to ³look first´ to the principal. In essence
it is an agreement that the surety will hold the financier harmless against
all losses arising from the contract between the principal and the financier.

It is not always obvious whether a clause or agreement is a guarantee or

an indemnity.
 And an example...
Some of the differences were highlighted by the Court of Appeal in the
200 ~

 

 


The appellants bringing the claim were minority shareholders in a

company of which the other party was managing director and majority
shareholder.

The majority shareholder had negotiated the sale of the company to a

purchaser who had agreed to buy the shares of the minority at the same
price.

The appellants were summoned to the sale completion meeting and were
told that as part of the terms agreed their shares would be purchased after
a delay of six months.

On being made aware of the risk of the purchaser becoming insolvent

within this period they declined to sign the documents but relented when
the majority shareholder undertook verbally to pay if the purchaser failed
to do so.

The purchaser did subsequently become insolvent and could not pay for
the minority shareholders¶ shares, so they sued the majority shareholder
on his undertaking to pay them.

The Court of Appeal found that, while all the other necessary elements of
a legally binding contract were present (offer, acceptance, consideration
and the intention to create legal relations), the undertaking given to the
minority shareholders was unenforceable since it was a guarantee and
was not in writing.

The minority shareholders lost the value of their shares and were left with
 no recourse.

´ow to tell which is which

Whether the security document is a guarantee or an indemnity (or both) is
a matter of construction. There is a mass of case law on the distinction,
but ultimately it comes down to the document in question. Considerations
are as follows:
6 The words used; the fact that one label or another is used is not
determinative but it may demonstrate what the parties were
attempting to achieve;
6 Whether the document purports to make the surety liable for a
greater sum than could be demanded under the principal contract, in
which case the inference is that he is undertaking an obligation to
indemnify;
6 Whether a demand upon the principal debtor is defined as a 
condition precedent to proceeding against the surety ± in which
case the document may well best be read as a guarantee;
6 An indemnity comprises only two parties- the indemnifier and the
indemnity holder. A guarantee is a contract between three parties
namely the surety, principal debtor and the creditor.








 3

 


 

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Æhat is the difference between bill of exchange and

cheque/check?|

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6 It may be drawn on any
6 It is drawn on a banker
party or individual.

6 It has three parties - the 6 There are three parties -

drawer, the drawee, and the drawer, the drawee,
payee. and the payee.

6 Foreign bills are drawn in

6 It is seldom drawn in sets
sets

6 It must be accepted by the

6 It does not require
drawee before he can be
acceptance by the drawee.
made liable to pay the bill.

6 Three days of grace are

6 Days of grace are not
always allowed to the
allowed to a banker
drawee.

6 o stamp duty is payable 6 utamp duty has to be paid

on checks on bill of exchange.

6 It may be drawn in any

6 It is usually drawn on the
paper and need not
printed f
necessarily be printed.




 

 
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There is a very old and correct saying that goes on to say that a coin has
two sides. Like a coin almost every aspect of life has two sides. For
example the most common example can be taken of the advent of
technology and the crime associated with it. With the advent of time and
technology, computers have formed an integral part of the working society.
Computers along with them have brought greater work and time efficiency
in the working circle of the society as a whole. But there comes the twist.
Along with all the benefits that computers and technology have brought,
there also comes the rising and alarming threat of cyber crime.

Cyber crime in recent times has been credited along with a lot of attention
by the general public, thanks to the almost impossible crimes committed by
the hackers. The dangers that cyber crime is posing to computers and
information in computers has been acknowledged by almost all the
countries. Serious concern and alarm have been raised against the
growing threat of cyber crime and its potential threat to the information
possessed in the computers.

The reason that cyber crime is posing a serious threat, is because of the
reason that most countries around the world have no existing law that they
can exert against cyber crimes. This leaves the businessmen and their
business at the mere mercy of the technology that is being used by the
businessmen in their business.

The only resort that the individuals have or can take against cyber crime is
the way of self protection. Although self protection is the one step that
people can take against cyber crimes, but still unfortunately it's not a full
proof safe step. As hackers can easily hack through the computers of
others, this makes the information stored in the computer more vulnerable
to information leakage.

One main reason why cyber crime has been gathering so much of
attention, is because of the fact that cyber crime has no boundaries of
working or occurring. Cyber crime have been reportedly breaching national
barriers at ease there by jeopardizing the political and the defense
strategies of the country in front of the other nations, as it has been
reported that after committing the crime the hackers sell the leaked
information to the rival countries for money.
The other reason as to why cyber crime is posing a serious threat is
because of the fact that it is usually very hard to track the hackers as they
operate together but from far and different places, making it harder for the
law enforcers to track and find them. These hackers usually operate from
different and far off places, sometimes even different countries making it
almost impossible for anyone to track them. Thus national bodies and
governments should operate together to make a legal framework and
structure through which no hackers can slip through after committing cyber
crime.