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Cpt law doubt

AJAY SONI (Student-B.Com CA-IPCC) (103 Points)

17 June 2012

if a dealer sells poor quality rice beliving it to be best qulity rice. it is:

a. mistake

b. misrepresentation

c. coecion

d. fraud

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18 Replies

(Guest)

mistake

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AJAY SONI (Student-B.Com CA-IPCC) (103 Points)
Replied 17 June 2012

Originally posted by : vijay bhasker kondapally
	mistake

can you please explain

(Guest)

definitions of above items

mistake: the contract has not gone as intended and there is some defect in the contract due to no fault of either parties.eg the seller has not said that the rice is good quality i.e. the seller has not spoken about the quality of rice

misrepresentation: the contract has gone wrong due to a false statement made innocently. eg the seller believes the rice to be of good quality but it is of low quality

coercion: forcefully selling the product.eg forcefullly selling the rice

fraud knowling making a false statement to deceive or induce the other party to enter in to the contract. .. eg.. the seller sayng the rice to be rice to be of best quality even though he knows it to be of low quality

in the above case since no statement is made by the seller and even he believed the rice to be of good quality . it is a case of mistake

Tejaswi Kasturi (student-cpt) (427 Points)
Replied 17 June 2012

It is not mistake but misrepresentation. In misrepresentation the promisor unknowingly endorses a false statement which he believes to be true. mistake happens bilaterally about facts which are usually known to the parties which contract.

(Guest)

if the seller makes a statement only it will be misrepresentation. or else it will be a mistake . here the seller has not made any statement in the given question ... @ tejaswi

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CA sumit chejara (ca final) (99 Points)
Replied 17 June 2012

It can be called MISTAKE......

vipin bansal (india) (48 Points)
Replied 17 June 2012

misrepresentation

CA Nitin Gupta (Senior Accounts Officer at JK Group of Industries + ca-cpt ipcc coaching) (97 Points)
Replied 18 June 2012

MISREPRESENTATION..... THE RULE OF CAVEOT EMPTOR MAY APPLY AS THE GOODS ARE NOT SOLD UNDER ANY BRAND... BUT THE CASE IS SURELY NOT A MISTAKE..

Tejaswi Kasturi (student-cpt) (427 Points)
Replied 18 June 2012

@ vijay It is misrepresentation because In the question statement, the dealer sells the rice beliving it to be best quality rice,(the buyers usually do not buy rice by just taking it from the container. they would ask for it and by giving this rice which he believes to be best quality, he is making the implicit statement that it is the best quality rice he has) so this is misrepresentation rather than a mistake of fact.

Tejaswi Kasturi (student-cpt) (427 Points)
Replied 18 June 2012

@ vijay It is misrepresentation because In the question statement, the dealer sells the rice believing it to be best quality rice,(the buyers usually do not buy rice by just taking it from the container. they would ask for it and by giving this rice which he believes to be best quality,or when the buyer specifically asks for best quality of rice he would give the same rice believing it to be of the best quality he is making the implicit statement that it is the best quality rice he has ) so this is misrepresentation rather than a mistake of fact.

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Priyal Shah (Article assisstant) (30 Points)
Replied 18 June 2012

I absolutely agree with the Misrepresentation as in the question it is mentioned that seller has sold the rice believing it to be of the best quality..

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