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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 - Legal Reasoning

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MCQ

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 

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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.

Concept: Contract Law
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