PRINCIPLE: Mere silence as to facts 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 speak or unless his silence is, in itself equivalent to speech.
FACT: A sell by auction to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness.
Correct Answer :
A cannot be held liable because he did not say anything positive about the soundness of horse.
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