Beruflich Dokumente
Kultur Dokumente
• Section 17 of CA 1950
• Important elements:
1) An act done by a party to a contract –
deceitful act that is intended to induce
another party to enter into a contract
2) Intention – state of mind of the representor)
• Derry Peek [1889] 14 App CaS 337
Lord Herschell: Fraud is when it is shown that
false representation has been made-
1) Knowingly, or
2) Without belief in the truth, or
3) Recklessly, careless whether it is true or false
• Weber v Brown [1908] 1 FMSLR 12
The app sued the resp for damages in respect of
an alleged false and fraudulent misrepresentation
relating to the number of rubber trees on an
estate over which the later had the right of
purchase, which he transferred for valuable
consideration to the former. The number of trees
represented was in excess of the number, which
actually existed on the estate.
• Held: The app had made the alleged
misrepresentation falsely and fraudulently,
and such act had caused the resp to acquire
and subsequently to exercise the right of
purchase.
Five acts of fraud – s.17
a) The suggestion as to a fact, of that which is not
true by one who does not believe it to be true
b) The active concealment of a fact by one having
knowledge of believe of the fact
c) A promise made without any intention of
performing it
d) Any other act fitted to deceive
e) Any such act or omission as the law specially
declares to be ‘fraudulent’
The suggestion as to a fact, of that which is
not true by one who does not believe it to
be true
Kheng Chwee Lian v Wong Tak Thong [1983] 2
MLJ 320
The resp had bought a half share in a piece of
land from the app and paid the purchase
price. Subsequently the resp was induced to
sign another agreement under which he gave
up part of the land he had previously
purchased in exchange for another, much
smaller piece.
• The resp alleged that he was induced by the false
representation of the resp to sign the second
agreement. He applied to the court for a
declaration and obtained a declaration that he
was the owner of one half of the land and an
order that the land be subdivided. The app
apeealed.
• Fed Ct: The misrepesentation was fraudulent
within the meaning of s.17(a) and (d) of CA 1950.
The agreement was voidable.
The active concealment of a fact by one having
knowledge of believe of the fact