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

Under the Explanation to Section 17 of the Indian Contract Act, 1872, mere silence as to facts likely to affect the other party's willingness to contract is not fraud where…

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A sells, by auction to B, a horse which A knows to be unsound and A says nothing to B about the horse's unsoundness.

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Correct answer B

Under the Explanation to Section 17 of the Indian Contract Act, 1872, mere silence as to facts likely to affect the other party's willingness to contract is not fraud where there is no duty to speak, so A's silence about the horse at an auction to a stranger means "This does not amount to fraud".

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