Question

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 minor) a horse which 'A' knows to be unsound. 'A' says nothing to 'B' about the unsoundness of the horse.

• A. 'B' can take plea of fraud because she is minor.
• B. 'A' has committed fraud.
• C. There cannot be a contract between a father and daughter.
• D. 'A' has not committed fraud.

Answer 1

The correct option is C There cannot be a contract between a father and daughter.

According to sec $17$ in the Indian contract Act Fraud explains here silence as to fact 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 speech the relevant fact or unless his silence is, in itself, equivalent to speech.
In the present case, the relationship between the parties would make it A's duty to tell B if the horse is unsound.