Home › CA Foundation › businesslaw › Other Essential Elements of a Contract › Mere silence as to facts amounts to fraud when:
Mere silence as to facts amounts to fraud when:
AThe contract is oral
BThere is a duty to speak or silence is equivalent to speech
CThe price is inadequate
DThe buyer fails to inspect the goods
Answer & Solution
Correct answer: B. There is a duty to speak or silence is equivalent to speech
Silence is not fraud unless the circumstances impose a duty to speak (e.g. a fiduciary relationship) or the silence is, in itself, equivalent to speech.
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