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Innocent Misrepresentation  I bought the

product from
I am selling Skin Sharma Ji. Not
Products, these only did the
have been product not
claimed by the cure my disease,
company to be but I also had an
curing the skin extreme
disease. reaction to it.
I'm suing
Sharma Ji
Innocent
Misrepresentation
I did not know that the
product could lead to
such extreme reactions.  I bought the product
How am I accountable from Sharma Ji. Not only
for it if I believed what did the product not cure
the company told me? my disease, but I also
had an extreme reaction
to it. I'm suing Sharma Ji

Does a customer claiming that a company did not reveal


all of a product's deficiencies, even after signing of the
contract, have a valid reason for legal action (even if the
company was unaware of the deficiencies)"?

Since Sharma ji wasn’t aware about the side effects of the


product himself, it was a case of innocent misrepresentation -
communication which is not in accordance with the facts, but
which the communicator thought or merely assumed to be
true
Fraudulent Holmes duped us!

We have developed a state of the art Misrepresentation She claimed to have


developed this state of art
blood testing machine that can test machine which had around 90
diagnose 200 conditions in a few percent
minutes from a pinprick of blood from certainty to detect 200 conditions
a finger tip. It is completely proprietary based on a single prick of fingertip
and state of the art and I am the chief to
person behind it! We have already get us to donate to her company.
raised about 10 billion dollars worth of In reality, her machine does not
capital and we are going to work
revolutionize healthcare. I am doing and no such thing is even
this because I lost someone who was thermodynamically possible
very close to me and I dont wish for
that to happen to anyone!

When the communicator knows that the


representation is not true and the person to whom it
was made relies on it to his or her disadvantage, it is
said to be a case of fraudulent misrepresentation
Fraudulent Holmes duped us!

We have developed a state of the art Misrepresentation She claimed to have


developed this state of art
blood testing machine that can test machine which had around 90
diagnose 200 conditions in a few percent
minutes from a pinprick of blood from certainty to detect 200 conditions
a finger tip. It is completely proprietary based on a single prick of fingertip
and state of the art and I am the chief to
person behind it! We have already get us to donate to her company.
raised about 10 billion dollars worth of In reality, her machine does not
capital and we are going to work
revolutionize healthcare. I am doing and no such thing is even
this because I lost someone who was thermodynamically possible
very close to me and I dont wish for
that to happen to anyone!
"Would the other party have
entered into the contract had he or
she known the truth?”

Investors certainly would not have


invested so much into Theranos if
they had known the truth about
Elisabeth’s claims. Hence this is
definitely a case for Fraudulent
Misrepresentation.
SALES WARRANTIES
Sales man to Buyer - Sir
these shoes have really Customer : I bought Earphones from Ramesh today. But
good soles, and it will when I came home and checked them, I found that there
work fine for at least was no audio from those earphones.
next 2 years.
Should Ramesh repair or replace the product???

• This is a case of implied warranty. 


• Implied warranty - Whether or not the seller is a
• Buyer - Buys the product due to the description merchant, if the seller knows or has reason to know that
given. the buyer intends the goods for a particular purpose, and
• 6 months later the shoes break. the buyer is relying on the seller to select a product
suitable for that purpose, there is an implied warranty that
This is a case of express warranty. the product is fit for that purpose. 
Express Warranty - An express warranty affirms a • the warranty must be labelled "full" or "limited.“ Among
fact or a promise the seller made to the buyer in other requirements, warranty products
bargaining concerning the nature of the goods. • must be repaired or replaced by the seller without charge
within a reasonable time if there is a defect.
• If a warranty is limited, the limitation must be conspicuous
so that buyers are not misled.
MAIL FRAUDS
XYZ Company received an
e-mail from
“exclusivee@inbus.com”
claiming that the bank was
updating their database
and needed several details
from the company
including their current
account number, mobile
phone number linked to
the account among other
things.

Company XYZ - reverted with the


XYZ Company INBUS Bank
relevant details
• When the company contacted the bank, they found there had been some fraudulent withdrawals from their account.
• The company then approached police, where an FIR was registered against unidentified persons.
• It also approached the officer, against the bank seeking the money lost in addition to other costs.
• The bank told the adjudicating officer that the account details of the company had been shared by the company’s
employees with the fraudsters and hence the bank was in no way responsible for the losses suffered by the company.

Who is to be
held
accountable
here?

The company
or the bank

XYZ Company INBUS Bank

• It was observed that the fraudulent e-mail that was sent to the company was in the domain name of the Inbus
bank (exclusivee@inbus.com).
• This indicates that the complainant was tricked by the use of the domain name of the bank, and it cannot be
relieved of its responsibility simply contending that the complainant was remiss to ignore the spelling error in the
word ‘exclusivee’

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