Chapter II - Of Contracts, Voidable Contracts and Void Agreements
Section 18
Section 18: Misrepresentation
Section 18 defines misrepresentation without making an intention to deceive a necessary feature of each limb. An honestly believed assertion can still fall within the definition when the information does not warrant it.
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Need advice on Section 18?
This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
“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.
Rule and business relevance
The section covers unwarranted positive assertions believed true, specified breaches of duty gaining an advantage without intent to deceive, and even innocent causation of a mistake about the substance of the agreement's subject. Section 19 deals with the resulting voidability questions.
Limits and related provisions
Honest belief alone is not a complete answer, but an inaccurate statement should still be matched to a statutory limb. Causation and Section 19's ordinary-diligence exception require separate analysis. A disagreement about future commercial performance is not automatically a misrepresentation about existing facts or substance.
Hypothetical business example
Hypothetical: a supplier confidently asserts a machine's specification based on an unchecked assumption and the buyer relies on it. The review examines what information warranted the assertion and its effect on consent, even if the supplier believed it true.
Practical decision flow
Record the exact representation or duty and the information available when it was made.
Match the conduct to a Section 18 limb and establish the effect on the other party.
Assess consent, diligence and available Section 19 relief before deciding how to respond.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Record the exact representation or duty and the information available when it was made.
- Match the conduct to a Section 18 limb and establish the effect on the other party.
- Assess consent, diligence and available Section 19 relief before deciding how to respond.
Avoid
- Honest belief alone is not a complete answer, but an inaccurate statement should still be matched to a statutory limb. Causation and Section 19's ordinary-diligence exception require separate analysis. A disagreement about future commercial performance is not automatically a misrepresentation about existing facts or substance.
Glossary
- Unwarranted assertion
- A positive assertion not justified by the information held, despite belief in its truth.
- Substance of the subject
- The essential nature of the thing forming the agreement's subject under clause (3).
Frequently asked questions
Must there always be an intent to deceive?
No. Section 18 expressly addresses conduct without that intent and even innocent conduct in the stated circumstances.
Does honest belief always prevent misrepresentation?
No. Clause (1) includes a false assertion believed true where the information does not warrant it.
Does the definition alone decide rescission?
No. Section 19's causation, exception and remedy rules must also be considered.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026