Section 142 of the Indian Contract Act, 1872 – Guarantee obtained by misrepresentation invalid

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Section 142: Guarantee obtained by misrepresentation invalid

Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid.

Source: official text of The Indian Contract Act, 1872 as published on India Code (PDF). All sections of the Indian Contract Act, 1872.