Principle: Mere silence as to facts likely to affect the decision of a person to enter into a contract is not a 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.
Options
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
Solution
A has committed no fraud
Explanation:
A has not committed fraud because A is merely silent as to the facts likely to affect the decision of a person to enter into a contract. In this case, A is silent about the fact of unsoundness of his horse which he sells to his daughter. Hence no fraud has been committed.
