Explanation:

The Explanation to Section 17 of the Indian Contract Act states that mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless there is a duty to speak or the silence is equivalent to speech. In a typical auction sale, the principle of 'caveat emptor' (buyer beware) applies, and mere silence about a defect is generally not fraud unless specific circumstances create a duty to disclose.