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A sells a field to B and fraudulently conceals a right of way over it, which A knows about and B does…

Active concealment of a known material fact to induce consent is fraud under section 17(2) of the Indian Contract Act, 1872, and section 19 makes the contract voidable at…

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A sells a field to B and fraudulently conceals a right of way over it, which A knows about and B does not. The concealment induces B's consent. Which statement is correct?

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Correct answer A

Active concealment of a known material fact to induce consent is fraud under section 17(2) of the Indian Contract Act, 1872, and section 19 makes the contract voidable at the option of the party whose consent was so caused. Therefore "B has the right to rescind the contract"; the seller's duty to disclose latent material defects is also recognised by section 55(1)(a) of the Transfer of Property Act, 1882.

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