Explanation of Article 59
This article addresses the explanation of "fraud," which is: the use of deceptive means to mislead the other contracting party. The article states that fraud leads to the "nullification of the contract," so it does not produce any legal effect, except in the cases exempted by the article, which are:
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First: If the fraud is "non-influential," meaning: the fraud has affected the will of the contracting party, but even if the fraud had not occurred, they would have proceeded to conclude the contract. For example: if a person buys a car and then discovers that the seller used deceptive means to mislead them, but even if they had not been subjected to this fraud, they would have bought the car, in this case, the fraud is non-influential.
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Second: If the fraud is "known to the other party," meaning: the fraud is known to the other party to whom the offer was directed. In this case, the fraud does not lead to the nullification of the contract.
It is worth noting that fraud differs from mistake in that a mistake relates to an incorrect perception of reality, whereas fraud involves the use of deceptive means to mislead the other contracting party.
This article is considered one of the most important articles related to fraud, as it protects the rights of the contracting parties and provides them with the opportunity to annul the contract if it is tainted by fraud.
Related To
Article 59
The validity of a contract shall not be affected by a mere written or mathematical error.