Question

Anta sells, by auction, to Banta, a horse which Anta knows to be unsound. Anta says nothing to Banta about the horse’s unsoundness. Is there a contract? Is there any fraud as per indian ?

Answer 1

Section 17(5) in The Indian Contract Act, 1872

Any such act or omission as the law specially declares to be fraudulent.

Explanation : Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak , or unless his silence, is, in itself, equivalent to speech.

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Answer 2

Answer:

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