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A sells by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s…

The facts reproduce Contract Act section 17 illustration (a): silence about the horse’s unsoundness at this auction is not, by itself, fraud. The explanation distinguishes a…

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A sells by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. Which of the following is correct under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer A

The facts reproduce Contract Act section 17 illustration (a): silence about the horse’s unsoundness at this auction is not, by itself, fraud. The explanation distinguishes a duty to speak or silence equivalent to speech, which would change the result. No such additional relationship or statement is supplied here. Mere known unsoundness does not make the contract unlawful.

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