Principle Mere silence as to facts likely to affect the decision of a person to enter into a contrac...........

Indian Contract Act (ICA)1872 Others

Principle: Mere silence as to facts likely to affect the decision of a person to enter into a contract is not fraud.

Facts:A sells to B (A‘s daughter who is a minor) a horse which A knows to be unsound. A says nothing to B about the unsoundness of the horse.

A has committed fraud

A has committed no fraud

There cannot be a contract between a father and daughter

The daughter did not ask therefore the father did not tell, hence no fraud

Explanation:

Explanation to Sec. 17 of Indian Contract Act makes it clear that mere silence as to the 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 person keeping silence to speak, or unless silence is equivalent to speech. A has committed no fraud