Distinguish between Fraud and Innocent Misrepresentation.

Fraud implies an intent to deceive, which is lacking if it is innocent misrepresentation. In case of misrepresentation and fraudulent silence, the defendant can take a good plea that the plaintiff had the means of discovering the truth with ordinary diligence. This argument is not available if there is fraud. In misrepresentation the plaintiff can avoid or rescind the contract. However, in case of fraud, the plaintiff can claim damages as well. If there is fraud, it may lead to prosecution for an offence of cheating under the Indian Penal Code.