धारा 108

Section 108 of the Indian Contract Act, 1872, deals with the effect of fraud on a contract of sale. According to this section, if the seller makes a false representation to the buyer with the intention of inducing him to enter into the contract, and the buyer is induced to enter into the contract by such representation, the contract may be rescinded by the buyer. However, if the buyer has the means of discovering the truth with ordinary diligence, he cannot rescind the contract. The buyer must also show that he was actually deceived by the false representation and that he would not have entered into the contract if he had known the truth. The seller is liable to the buyer for damages for the loss caused by the false representation.