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Question

This section consists of fifty (50) questions. Each question consists of legal propositions/ principles (hereinafter referred to as 'principles') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles except the principles that are given here in below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the "most reasonable conclusion" arrived at may be unacceptable for any other reason. It is not the objective of this section to test your knowledge of law.
Principle: Mere silence as unfairly, hurts B, A commits no offence decision of a person to enter into a contract does not amount of fraud, unless his silence is in itself equivalent to speech.
Facts: A sells to B a horse which A knows to be of unsound mind. B says to A that if A does not say anything about the state of mind of horse, then B shells presume that the horse is of sound mind. A says nothing to B about the mental condition of horse.

A
A has committed fraud
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B
A has committed misrepresentation
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C
There cannot be a fraud because A says nothing about the mental condition of the horse
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D
There cannot be a fraud because B did not ask A whether the horse is of sound mind
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Solution

The correct option is A A has committed fraud
According to the facts provided we know that B specifically say to A that if he does not say anything about the state of mind of horse, the B shall presume that horse is of sound mind.
Thus 'A"s silence is equivalent to speech and will amount to fraud under section 17 of the Indian Contract Act, 1872 as is also enumerate by the above principle.

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