"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.
Legal Commentary & Landmark Judgments: Section 18
Section 18 of the Indian Contract Act, 1872 defines 'misrepresentation', covering innocent or non-fraudulent false statements, breaches of duty that mislead another, and causing mistaken belief without intent to deceive.
Under the exception to Section 19, if consent was caused by misrepresentation or fraudulent silence, the contract is NOT voidable if the aggrieved party had the means of discovering the truth with ordinary diligence. Consequently, commercial purchasers who neglect available due diligence opportunities may find their claim under Section 18 statutorily barred.