The term fraud and misrepresentation has been defined in the Indian Contract Act,1872. Section 17 defines fraud and Section 18 defines misrepresentation. If the consent of the parties of contact are influenced by the fraud or misrepresentation the consent is not said to be free and it is a voidable contract.

Following are the main differences between the fraud and misrepresentation-

1.  Both in fraud and misrepresentation the statement is false, but in fraud the fraudulent statement is made by a person, who knows that it is false, whereas in misrepresentation the person making the statement believes the statement to be true.
2. In fraud the intention of the person making the a false statement is to deceive the other party and induce him to enter into a contract on that basis. In misrepresentation there is no such wrongful intention.
3. Where the consent of the party has been caused by fraud. The aggrieved person has two remedies, he’s the option to make the contract rescind and he may also file a civil suit under law of torts for damages because fraud is also a tortious wrong. But in case of a contract which has been caused by misrepresentation of one party, there is only one remedy to rescind the contract, such contract is voidable under section 19 of the Indian Contact Act, 1872.
4. Where there is misrepresentation by one party contract is voidable at option of other party, but it is not voidable if the person seeking to avoid the contract had the means of discovering the truth by ordinary diligence. But in case of consent caused by fraud (except silence) it does not matter the aggrieved person could have discovered the fraud by ordinary diligence.