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Assume each sale is an arm’s-length transaction. In which case does the seller’s deliberate silence…

Silence can amount to fraud when the circumstances create a duty to speak or make the silence equivalent to speech. Deliberately passing off a stolen car as the seller’s own…

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Assume each sale is an arm’s-length transaction. In which case does the seller’s deliberate silence amount to fraud under section 17 of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer A

Silence can amount to fraud when the circumstances create a duty to speak or make the silence equivalent to speech. Deliberately passing off a stolen car as the seller’s own to induce the purchase conveys a false impression about title.

Option feedback

Option A

Deliberately letting the buyer understand that the stolen car is the seller’s own makes the silence equivalent to a false assertion about ownership.

Option B

The stated facts contain no misleading conduct or duty to volunteer an opinion about the wheat.

Option C

Withholding a personal price forecast, without a duty to disclose or misleading conduct, is not fraud.

Option D

The accurate description gives no assurance that the offered book is the newest edition.

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