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A sells, by auction, to his daughter, a horse which 'A' knows to be unsound and 'A' says nothing about…

Contract Act 17 illustration (b) treats the daughter’s relation to the seller as one creating a duty to disclose the horse’s unsoundness. Mere silence at an ordinary auction…

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

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Correct answer A

Contract Act 17 illustration (b) treats the daughter’s relation to the seller as one creating a duty to disclose the horse’s unsoundness. Mere silence at an ordinary auction is not automatically fraud, but the statutory daughter variant illustrates the duty-to-speak exception.

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