Contract act

Corporate & Other Laws

Anna intended to deceive Mr. John. She explained her business in the presence of Attul, a close friend of John. John, influenced by the statements of Anna, invested some amount in her business. Later, on 18th March, Attul contacted Anna and invested money in her business. After some time, Attul came to know that Anna made false statements with fraudulent intention. Attul suffered financial loss. 1. According to the Indian Contract Act, can Attul sue Anna? 2. If Attul had made investment on the insistence of John, can he still sue on anna

Sree Sree

CA Final

★ 3K+

09-Sep-25 21:50

229

Answers (1)

Best Answer

Yes, Attul can sue Anna under the Indian Contract Act, since Anna’s fraudulent statements, made in his presence, directly induced him to invest. If Attul invested only due to John’s personal insistence (without relying on Anna’s words), he cannot sue Anna. But if John’s insistence was based on and conveyed Anna’s false statements, then Attul can still sue Anna.

Ashlesha Atal

Faculty

12-Sep-25 15:29