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Which option states the test in the Explanation to Section 17 of the Indian Contract Act, 1872 for when…

Silence about a fact likely to affect willingness to contract is ordinarily insufficient for fraud. The Explanation to Section 17 makes an exception where the circumstances…

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Which option states the test in the Explanation to Section 17 of the Indian Contract Act, 1872 for when mere silence about a fact can amount to fraud?

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Correct answer D

Silence about a fact likely to affect willingness to contract is ordinarily insufficient for fraud. The Explanation to Section 17 makes an exception where the circumstances create a duty to speak or where the silence is itself equivalent to speech.

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Option A

Knowledge of a material fact alone does not bring silence within the exception.

Option B

An express question is unnecessary when a duty to speak exists or silence itself amounts to speech.

Option C

Changed circumstances alone are insufficient. A change may matter if it gives rise to a duty to disclose.

Option D

The Explanation identifies two alternatives, a duty to speak and silence that is itself equivalent to speech.

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