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Question

Legal Studies Question on Laws of Contract

A contracting party is under no obligation to disclose the whole truth to the other party or to give him the whole information in his possession affecting the subject-matter of the contract, Pick the most appropriate option for the statement:

A

Passive concealment never amounts to fraud. Therefore, there is no obligation of disclosure.

B

Active and passive concealment both are frauds.

C

Ordinarily mere silence is no fraud even if its result is to conceal facts likely to affect the willingness of a person to enter into a contract.

D

None of the above

Answer

Ordinarily mere silence is no fraud even if its result is to conceal facts likely to affect the willingness of a person to enter into a contract.

Explanation

Solution

The correct option is (C): Ordinarily mere silence is no fraud even if its result is to conceal facts likely to affect the willingness of a person to enter into a contract.