A sells an unsound horse at auction to his daughter, who has just come of age. He knows the horse is…
Section 17 generally excludes mere silence from fraud, but makes an exception when the circumstances create a duty to speak. Illustration (b) recognizes that duty in this…
Choose your answer
A sells an unsound horse at auction to his daughter, who has just come of age. He knows the horse is unsound and deliberately says nothing to induce her to buy it. How does section 17 of the Indian Contract Act, 1872 classify his silence?
Answer and explanation
Correct answer A
Section 17 generally excludes mere silence from fraud, but makes an exception when the circumstances create a duty to speak.
Illustration (b) recognizes that duty in this relationship when the daughter has just come of age.
The seller deliberately withholds the defect to induce her purchase, so his silence is fraudulent.
Option feedback
Option A
Illustration (b) recognizes a duty to tell the daughter who has just come of age that the horse is unsound.
Option B
The duty to speak brings the deliberate omission within the exception for fraudulent silence.
Option C
The seller knows the horse is unsound and deliberately withholds that fact to induce the sale.
Option D
The seller knows the true condition of the horse, so the parties do not share a mistake.
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