IGNOU BCOC 133 2025 - "Mere silence as to facts is not fraud". Explain with

Question

"Mere silence as to facts is not fraud". Explain with examples.

17 Nov 2025

Answer :

Word Count : 262

In Business Law, the principle “mere silence as to facts is not fraud” implies that non-disclosure of information does not amount to fraud unless there is a duty to disclose. Fraud, under Section 17 of the Indian Contract Act, 1872, involves deliberate misrepresentation, deceit, or concealment of material facts with the intention to induce another party to enter into a contract. Silence alone, without any active misrepresentation or duty to disclose,

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