Is Mere Silence Is Not Fraud
A silence to the contract is under no obligation to disclose the whole truth to the other party. 'CAVEAT EMPTOR' i.e., let the purchaser beware is the rule applicable to contracts.There is no duty to speak is such cases and silence does not amount to fraud. Similarly there is no duty to disclose facts which are within the knowledge of both parties.
Example : H sold to W some pings which to his knowledge suffering from fever. The pings were sold 'with all faults' and H did not disclose the facts of fever to W. Held there was no fraud. [Word v. Hobhs. (1878) 4 AC 13]
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