BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Knowingly making a false statement
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Promise made without intending to perform
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Active concealment of facts
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Innocent false statement
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Detailed explanation-1: -Solutions for Which of the following acts does not fall under the categories of fraud? a)Intentional false statement of factsb)Active concealment of factsc)Innocent false statementd)Promise made without intention to perform. Correct answer is option ‘C’.
Detailed explanation-2: -A sells a horse to B, his daughter by auction, who has just come of age. Here the relationship between the parties would make it the duty of A to disclose that the horse is unsound. If he does not disclose so, it would amount to fraud.
Detailed explanation-3: -(2) the active concealment of a fact by one having knowledge or belief of the fact; (3) a promise made without any intention of performing it; (4) any other act fitted to deceive; (5) any such act or omission as the law specially declares to be fraudulent.
Detailed explanation-4: -Fraud is defined as the intentional false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury (as defined by the American Institute of Certified Public Accountants).