Exceptions to Mare Silence as Fraud
The principle of "Mare Silence is not fraud" states that mere silence or nondisclosure of information does not constitute fraud. However, there are certain exceptions to this principle where silence can be considered fraudulent:
- **Fiduciary Duty**: If there is a fiduciary relationship between the parties, the duty to disclose information may arise. For example, a company's board of directors has a fiduciary duty to its shareholders to provide all material information regarding the company's financial status.
- **Half-Truths or Partial Disclosure**: If one party discloses partial information or half-truths with the intention to deceive the other party, it can be considered fraudulent. For instance, if a seller conceals a defect in a product while advertising it as in perfect condition, it can be deemed as fraud.
- **Concealment of Material Facts**: If a party intentionally conceals material facts that would have influenced the other party's decision, it can be considered fraudulent. For example, if a real estate agent fails to disclose that a property has termite damage, it can be seen as fraudulent misrepresentation.
- **Active Concealment**: If a party takes active steps to hide or suppress information that would have affected the other party's decision, it can be considered fraud. For instance, if a car dealer manipulates the odometer reading to conceal the true mileage of a vehicle, it is an act of active concealment.
In conclusion, while mere silence alone may not constitute fraud, there are exceptions where silence can be deemed fraudulent, especially in cases involving fiduciary duties, half-truths, concealment of material facts, and active concealment. It is essential for parties to act in good faith and disclose all relevant information to avoid any accusations of fraud.