Directions: The question consists of two Statements - one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option. Principle: Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud - unless the circumstances of the case are such that - regard being had to them - it is the duty of the person keeping Silence to speak - or unless his silence is - in itself - equivalent to speech. Fact: A sells - by auction - to B - a horse which A knows to be unsound. A says nothing to B about the horse's unsoundness. Page | 64