BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: –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-2: -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-3: -When the person knows that his silence will be equivalent to speech but still chooses to stay silent, he is guilty of fraud. This is because silence is sometimes equivalent to speech.

Detailed explanation-4: -First, silence will constitute acceptance if the offeree gives the offeror the impression that silence will be considered an acceptance. See National Union Fire Insurance Co. v. Ehrlich, 122 Misc.

Detailed explanation-5: -Principle : Mere silence as to facts likely to affect the decision of a person to enter into a contract is not fraud. Facts : ‘A’ sells to ‘B’ (A’s daughter who is minor) a horse which ‘A’ knows to be unsound. ‘A’ says nothing to ‘B’ about the unsoundness of the horse.