CAN SILENCE IN CONTRACTS AMOUNT TO FRAUD UNDER INDIAN CONTRACT LAW?

This paper examines when silence or non-disclosure can amount to fraud under Indian contract law. Section 17 of the Indian Contract Act generally provides that mere silence does not amount to fraud, but the paper examines situations where silence can become fraudulent. These include cases involving a duty to speak, half-truths, changes in circumstances and situations where silence itself becomes deceptive. The paper also looks at the Transfer of Property Act and the Hindu Marriage Act to understand how similar duties of disclosure operate in other areas of law. Finally, it examines Section 19 and argues that the law attempts to balance the duty to disclose with the responsibility of the other party to exercise ordinary diligence.