PRINCIPLE Mere silence as to facts likely to affect the willingness of a person to enter into a cont...........

Legal Concepts Law of Torts

PRINCIPLE: Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that regard being had to them it is the duty of the person keeping silence to speak or unless his silence is, in itself equivalent to speech.

FACT: A sell by auction to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness.

A can be held liable for fraud.

A can be held liable for misrepresentation.

A cannot be held liable because he did not say anything positive about the soundness of horse.

A cannot be held liable because it is the buyer who must be aware of the things.

Explanation:

One has a duty to speak in those situations where the circumstances are of such a nature that silence could be equated with speech ,
hence in this situation A was not obligated or duty bound to speak.