Section 18 of ICA : Section 18: "Misrepresentation" Defined

Explanation using Example

Imagine you are buying a car from a dealer. The dealer asserts that the car is new and has never been involved in any accidents, even though he doesn't have complete information about the car's history. Later, you discover that the car was repaired after a major accident. This situation is an example of misrepresentation under the first clause of Section 18 of The Indian Contract Act, 1872, because the dealer made a positive assertion not warranted by his knowledge, which turned out to be untrue.