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Assume each seller intends to induce an arm’s-length sale. In which situation does the seller’s silence…

Section 17 generally treats mere silence as insufficient unless there is a duty to speak or silence is equivalent to speech. In the car sale, the seller knowingly conceals…

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

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Answer and explanation

Correct answer A

Section 17 generally treats mere silence as insufficient unless there is a duty to speak or silence is equivalent to speech. In the car sale, the seller knowingly conceals the lack of any right to sell while offering the car as their own. Section 14(a) of the Sale of Goods Act, 1930 generally makes the seller’s right to sell an implied condition of the sale.

Option feedback

Option A

Offering a stolen car as one’s own makes the silence misleading about the right to sell.

Option B

These facts show no concealment, false assertion or special duty to speak about grade.

Option C

Section 17 illustrates that silence about private information on a possible price change in an ordinary trade does not alone amount to fraud.

Option D

Accurately identifying the edition gives no false impression on the stated facts about which edition is offered.

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