question_answer

Principle When a person represents to another something as a true fact knowing fully well that it is not true he is guilty of fraud The person subjected to fraud may avoid an agreement.

Facts 'X' presents a horse for sale and kept the horse on display so that anyone interested could examine it properly. The horse has a cracked hoof and it is cleverly canceled by the owner. 'Y' tells 'X' "If you do not deny it I shall assume that the horse is sound". 'X' keeps silent. Y purchases the horse.

A)  Y, cannot avoid the agreement, as the horse was on display and he could have examined the horse properly

B)  Y, can avoid the agreement on discovery of the defect

C)  Y, can avoid the agreement as, it is a void contract

D)  Y, cannot avoid the agreement as T did not make any representation to mislead him. He merely kept silent, so that Y could find out the defects himself