Question

“Mere silence does not amount to fraud”. Discuss.

Answer 1

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Mere silence is not fraud:.


A person is not bound to disclose the defect of his articles. Example:

A sells by auction to B, a horse which A knows to be unsound. A says nothing to B about the horse's unsoundness. It is not fraud.

2. Silence is fraud if silence is equivalent to speech:

Again where silence is equivalent to speech, silence amounts to fraud. For example, B says to A "If you do not deny it, I shall assume that the horse is sound." A says nothing. Here A's silence is equivalent to speech and as such, it is fraud.

Duty or obligation to speak:

In certain contracts, the law requires the parties to make fullest disclosure of material facts. Failure to disclose such facts would make the contract void or voidable as the case may be. Such contracts are called Uberrimae fidei, i.e., contracts requiring utmost good faith. In such contracts, party having any information regarding the subject-matter which is likely to affect the willingness of the other party to enter into transactions, is bound to disclose the information

Answer 2

“Mere silence does not amount to fraud”

Explanation:

Mere silence as to facts does not amount o fraud unless it is the duty of the person keeping silence to speak or when his silence is equivalent to speech.

Thus a person is required by law to refrain from intentional or active concealments as to facts.

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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