A is aware of a material fact when a contract is being entered into, but he keeps silent about it despite his duty to reveal the correct facts. Is the contract voidable because of
Verified Answer
A. Fraud
B. Misrepresentation
C. Undue influence
D. Coercion
Explanation:
Generally, mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud. However, if there is a duty to speak, or if silence is equivalent to speech, then such silence can constitute fraud (Section 17, Indian Contract Act). The phrase 'despite his duty to reveal the correct facts' explicitly points to fraud.