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B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the…

Illustration (d) to section 19 states: "The contract is voidable at the option of A." B did more than stay silent: section 17 treats "the active concealment of a fact by one…

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B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Through A's ignorance, B is able to buy the estate at an under-value. What is the legal position of the sale?

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Correct answer D

Illustration (d) to section 19 states: "The contract is voidable at the option of A." B did more than stay silent: section 17 treats "the active concealment of a fact by one having knowledge or belief of the fact" as fraud, and section 19 lets the deceived party avoid the contract. The rule that mere silence is not fraud does not help B, because he took steps to hide the ore; nor is there a shared mistake, since B knew the truth.

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