BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Silence here does not amount to fraud
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Silence here amounts to fraud
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‘A’ has committed misrepresentation.
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A has committed coercion
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Detailed explanation-1: -This is not fraud in A. (a) A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. This is not fraud in A."
Detailed explanation-2: -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 speak2, or unless his silence is, in itself, equivalent to speech.
Detailed explanation-3: -Silence itself in some situations can be considered equivalent to speech. Herein, a person who remains silent despite knowing that his silence can be deceptive is not innocent and can be declared guilty of fraud. For example, the buyer knows the property’s actual worth but conceals this fact from the seller.
Detailed explanation-4: -( ACT NO. IX OF 1872 ) A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
Detailed explanation-5: -This means that when an offer is proposed, the offeror cannot say that if no reply came within a given time, then the offer is bound to be accepted. An offeree’s silence cannot amount to acceptance, once again.