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A sells a horse at auction to his daughter, who has just come of age. A knows that the horse is unsound…

Section 17 of the Indian Contract Act, 1872 generally excludes mere silence from fraud. Illustration (b) imposes a duty to tell the daughter who has just come of age that…

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A sells a horse at auction to his daughter, who has just come of age. A knows that the horse is unsound but does not tell her. Under the Indian Contract Act, 1872, how is this silence treated?

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Answer and explanation

Correct answer A

Section 17 of the Indian Contract Act, 1872 generally excludes mere silence from fraud. Illustration (b) imposes a duty to tell the daughter who has just come of age that the horse is unsound. A knows of the defect and fails to disclose it in that relationship.

Option feedback

Option A

The relationship in illustration (b) creates a duty to speak.

Option B

The duty-to-disclose exception makes silence actionable under section 17.

Option C

A actually knows about the defect, so the offered premise of innocent belief is absent.

Option D

A knows the horse is unsound, so the two parties do not share a mistake.

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