All India Bar Examination (AIBE) 15-XV Previous Year Question Papers with Answers

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33.

Peek Vs. Gurney is a famous case related to

A: Coercion
B: Fraud
C: Mistake of fact
D: Mistake of law

The answer is: B

Explanation

The correct option is B: Fraud.

Peek Vs. Gurney is a famous case related to misrepresentation and fraud in contract law. The case involved a company that issued a prospectus with false statements to induce the purchase of shares. Peek, who bought the shares later on the stock exchange, sued the company for indemnity, but his claim was rejected. The court held that only the original allottees of shares, who were the intended recipients of the prospectus, could sue for misrepresentation. This case established the principle that an action of misrepresentation can only be brought by the misled party, or "representee" .