Which of the following is not a fraud as per the Indian Contract Act, 1872?
Under the Explanation to Section 17 of the Indian Contract Act, 1872, "Mere silence if not duty bound to speak." is not fraud, unless the circumstances make it the duty of…
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Which of the following is not a fraud as per the Indian Contract Act, 1872?
Answer and explanation
Correct answer C
Under the Explanation to Section 17 of the Indian Contract Act, 1872, "Mere silence if not duty bound to speak." is not fraud, unless the circumstances make it the duty of the person keeping silence to speak or the silence is in itself equivalent to speech. Section 17 itself lists "A promise made without intention of performing it.", "An active concealment of fact by one having knowledge of the fact." and "Any act or omission law specifically declares to be fraudulent." as fraud.
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