Law · Commercial Law
A and B, being traders, enter into a contract. A has private information of a change in prices which would affect B's willingness to proceed with the contract. A does not inform B. According to the Indian Contract Act, 1872, decide the legal status of the transaction.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The contract is void from the beginning due to non-disclosure
- 2A's silence amounts to misrepresentation, making the contract voidable
- 3A is bound to inform B, as A's silence amounts to fraud
- 4A is not bound to inform B, as mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud✓
Correct answer
A is not bound to inform B, as mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud
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