Agreement/contract

An NBFC offers a loan to a person by telling a lie verbally and writing different terms on the sanction letter, which is accepted by the borrower believing the person telling the  lie  without going through the sanction. The sanction letter is unsigned by the company officials.

1. Is the agreement / contract void in the absence of signature of  the sanctioning authority.

2. Is it void due to misrepresentation to the borrower verbally

3. Is it void due to fraud committed on the borrower by telling a lie and writing differenet terms in the sanction.

Which of above is applicable in above case?

 

Replies (1)

It is a mistake on part of the borrower to have not read the letter properly. The borrower can raise objections against the bank for misrepresenting facts, but the letter cannot be considered void automatically. The borrower has to option of approaching the legal dept of the bank and put it on record his complaints. 

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