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Directions: Read the following passage and answer the question.
Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.
Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.
To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.
[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]
Q. Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasn't particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.
  • a)
    Nora is accountable for fraud.
  • b)
    Sana must pay for her fraud.
  • c)
    Sana and Nora are both accountable for fraud.
  • d)
    Sana and Nora are not accountable for any fraud.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Directions: Read the following passage and answer the question.Fraud i...
Since neither Sana nor Nora actively concealed the fact that the necklace was not a unique one in an effort to deceive or play a ruse on anyone, none of them can be held accountable.
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Read the information given below carefully and answer the following question.The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.Q.Nora sells a diamond necklace to Sana stating that it is an antique diamond which is very rare in the world. After selling the diamond necklace she realizes that the diamond necklace was not any rare one, but by then Sana had sold the necklace to Priya. Priya on realizing that the necklace was not a rare one sues both Nora and Sana. Decide.

Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q. A second-hand automobile dealer named Pramod informs Shiv that he can buy him a Ford Mustang for a pittance because he is well acquainted with the Mustang showroom dealer. Shiv gives his consent and gives Pramod the money. Pramod gives Shiv the Mustang as promised. Shiv later discovers that the car was stolen, and he accuses Pramod of fraud. Pramod asserts that he was not required to notify Shiv about it and uses the "buyer be aware" defense. Determine if fraud has been committed.

Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.A promises B that he will sell his recently constructed manor for 10 lakhs, but the manor is actually worth at least 40 lakhs. A keeps quiet in front of B despite being aware that the manor was destroyed in a fire.Decide.

Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.B is informed by A that he is prepared to sell him his home for Rs. 50 lakhs. He also says that the residence is furnished entirely. B, who just so happened to be in the neighborhood where the house was located, decides to ask about the property. He discovered that the house was unfurnished after asking about. He does not speak, however, and later accuses A of fraud on the grounds that facts were actively hidden. Determine if fraud has been committed.

Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.What are the key elements required to establish fraud in a contract, as described in Section 17 of the Contract Act?

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Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer?
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Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.
Here you can find the meaning of Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following passage and answer the question.Fraud implies and involves any of the following acts committed by a contracting party or his connivance or his agent with the intention of deceiving or inciting another party or his agent to enter into the agreement. Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstance of the case is such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence, in itself, is equivalent to speech.Section 17 of the Contract Act describes fraud and lists the acts that amount to fraud, which are a false claim, active concealment, promise without the intention of carrying it out, any other deceptive act, or any act declared fraudulent. To constitute fraud, the contracting party, or any other individual with his connivance, or his agent, or to induce him to enter into the agreement, should have performed such acts. The parties have no duty to speak about facts likely to affect the consent of the other party to the contract, and mere silence does not amount to fraud unless the circumstance of the case shows that there is a duty to speak or silence equivalent to speech.To prove a case of fraud, it must be proved that representations made were false to the knowledge of the party making them. The statement must be false in substance and in fact. Positive knowledge of falsehood is not a criterion. In order to constitute fraud, it is necessary that the statement was made by the person concerned with knowledge of its falsehood, or without belief in its truth. Even mere ignorance as to the truth or falsehood of material assertion, which, however, turns out to be untrue, is deemed equivalent to the knowledge of its untruth, as also where the representor suspected that his statement might be inaccurate, or that he neglected to inquire into its accuracy.[Extracted, with edits and revisions, from Fraud in Contracts - Section 17 of the Indian Contract Act, article by Ipleaders]Q.Sana purchases a diamond necklace from Nora, who describes it as an antique diamond that is extremely rare worldwide. After selling the diamond necklace, she discovers that it wasnt particularly uncommon; nevertheless, by that point, Sana had already sold the jewelry to Priya. Priya sues both Nora and Sana after finding the jewelry was not a rare one. Decide.a)Nora is accountable for fraud.b)Sana must pay for her fraud.c)Sana and Nora are both accountable for fraud.d)Sana and Nora are not accountable for any fraud.Correct answer is option 'D'. 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