Question

The active concealment of a fact by one having knowledge or belief of the fact is called_____.

• A. Fraud
• B. Mistake
• C. Coercion
• D. All of the above

Answer 1

Answer: (A)

Fraud

Section 17 states: ‘Fraud’ means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent1, with intent to deceive another party thereto or his agent, or to induce him to enter into the contract:—

(1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;

(2) the active concealment of a fact by one having knowledge or belief of the fact;

(3) a promise made without any intention of performing it;

(4) any other act fitted to deceive;

(5) any such act or omission as the law specially declares to be fraudulent.