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Ghanshyam and Afzal are good friends. They are traders and together keep on doing business transaction…

Afzal is not obliged to disclose his private information about the change in prices. Section 17 of the Contract Act generally treats silence as distinct from fraud unless…

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Ghanshyam and Afzal are good friends. They are traders and together keep on doing business transaction very often. In April 2016, they enter in a contract. Afzal has certain confidential information from his private sources about some change in prices that would affect Ghanshyam's willingness to proceed with the contract. As per Indian Contract Act, 1872, identify which of the following is applicable.

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Correct answer D

Afzal is not obliged to disclose his private information about the change in prices. Section 17 of the Contract Act generally treats silence as distinct from fraud unless there is a duty to speak or the silence itself amounts to speech. Its illustration concerning traders and private price information directly applies here; friendship and frequent trading alone do not create the missing duty.

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