Mere silence as to facts is not fraud explain with examples
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Section 17 of the Indian Contract Act points out that mere silence as to the facts likely to affect the willingness of a person to enter into a contract is not fraud. For example if I have to begin a contract, as an efficient agent, I would very skilfully hide the change in prices that is going to happen shortly as the knowledge of it may impact his decision. I am not bound to share that information with the party.
In another case mere silence as to facts can be a fraud where silence is speech. Suppose I want to sell my car and the buyer asks, " Is the car working well?' I don't say anything and keep silence. Here my silence is speech as it means that the car is working well. Hence, the silence here is a fraud.
In another case mere silence as to facts can be a fraud where silence is speech. Suppose I want to sell my car and the buyer asks, " Is the car working well?' I don't say anything and keep silence. Here my silence is speech as it means that the car is working well. Hence, the silence here is a fraud.
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