Section 18 Indian Contract Act 1872 - Misrepresentation Defined

Section 18 of the Indian Contract Act, 1872 defines misrepresentation. It covers certain false or misleading representations made without an intention to deceive, including an unwarranted positive assertion, specified breaches of duty and innocent conduct that causes a party to make a mistake about the substance of the subject matter of an agreement.

In simple terms: Misrepresentation generally concerns a false or misleading representation that induces another person to enter into an agreement even though the person making the representation may not have intended to deceive.

Section 18 - Misrepresentation Defined

18. "Misrepresentation" means and includes-

(1) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;

(2) any breach of duty which, without an intent to deceive, gains an advantage to the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him;

(3) causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement.

The official text of the Indian Contract Act, 1872 can be verified through India Code - Indian Contract Act, 1872.

Meaning of Misrepresentation Under Section 18

Section 18 identifies three forms of conduct that can amount to misrepresentation. A significant feature of the provision is that an intention to deceive is not essential in the circumstances covered by the section.

1. Positive Assertion That Is Not True

The first category applies where a person positively asserts something as true even though the information available to that person does not warrant the assertion. The person may genuinely believe the statement to be true, but the assertion can still fall within Section 18 if the statutory conditions are satisfied.

2. Breach of Duty Without Intent to Deceive

The second category covers a breach of duty which, without an intention to deceive, gives an advantage to the person committing the breach or someone claiming under that person by misleading another person to his or her prejudice.

3. Innocently Causing a Mistake About the Subject Matter

The third category applies where a person, even innocently, causes a party to an agreement to make a mistake concerning the substance of the thing that is the subject of the agreement.

Essential Features of Misrepresentation

There must be conduct falling within one of the categories specified in Section 18.
A positive assertion may be covered even where the maker believes the assertion to be true.
A breach of duty may constitute misrepresentation even without an intention to deceive.
Innocent conduct may be covered where it causes a mistake as to the substance of the subject matter.
For relief based on misrepresentation, the representation must have caused the consent in the manner contemplated by Section 19.

Effect of Misrepresentation Under Section 19

Section 18 defines misrepresentation, while Section 19 of the Indian Contract Act deals with the legal consequence where consent to an agreement has been caused by coercion, fraud or misrepresentation.

Subject to the provisions and exception contained in Section 19, an agreement where consent was caused by misrepresentation is a contract voidable at the option of the party whose consent was so caused. Section 19 also permits that party, in the circumstances stated in the provision, to insist upon performance and to be put in the position in which that party would have been if the representation had been true.

Important: Section 19 contains an exception relevant to certain cases of misrepresentation. Where the statutory conditions of that exception are satisfied, a contract may not be voidable if the party had the means of discovering the truth with ordinary diligence. The complete wording of Section 19 should therefore be considered together with Section 18.

Misrepresentation and Fraud - Key Difference

Section 17 deals with fraud, whereas Section 18 deals with misrepresentation. The statutory provisions distinguish conduct involving an intent to deceive from forms of misleading conduct that can fall within misrepresentation without such an intention.

Point	Misrepresentation - Section 18	Fraud - Section 17
Relevant provision	Section 18	Section 17
Intent to deceive	The statutory definition includes circumstances where there is no intent to deceive.	The statutory definition expressly deals with specified acts committed with intent to deceive or induce a person to enter into a contract.
Belief in statement	A positive assertion may be covered even though the maker believes it to be true.	Section 17 includes suggestion of an untrue fact by one who does not believe it to be true.
Legal consequence	The consequences must be considered with Section 19 and the other applicable provisions of the Act.

Relationship With Free Consent

Under Section 14 of the Indian Contract Act, consent is free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake, subject to the provisions referred to in that section. Misrepresentation is therefore one of the statutory factors relevant to determining whether consent to a contract was free.

Related Provisions of the Indian Contract Act

Legal reference: Section 18, Indian Contract Act, 1872 (Act 9 of 1872). Last reviewed: 20 September 2026.