| Each question consists of legal principle(s) (here-in-after referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. Principles have to be applied to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e. [a], [b], [c] or [d] is the most reasonable conclusion. In other words, in answering the following questions, you must not rely on any principle except the principles that are given herein 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 ability in legal aptitude, study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. |
| Principle Mere silence as to facts likely to affect the decision of a person to enter into a contract is not fraud. |
| Facts 'A' sells to 'B' (A's daughter who is a minor) a horse which 'A' knows to be unsound. 'A' says nothing to 'B' about the unsoundness of the horse. |
A) 'A has committed fraud
B) 'A has committed no fraud
C) There cannot be a contract between a father and daughter
D) The daughter did not ask therefore the father did not tell, hence no fraud
Correct Answer: B
Solution :
Sol. [b] In accordance to the principle discussed here, this is not a case of fraud as mere silence to facts that are likely to affect the decision of a person entering a contract is not fraud.
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