17. " Fraud" defined.-" Fraud" means and includes any of the following acts committed by a party to a contract, or with his connivance, or by his agent, 2[
with intent to deceive another party thereto of his agent, or to induce him to enter into the contract:-
the suggestion, as a fact, of that which is not true, by one who does not believe it to be true;
the active concealment of a fact by one having knowledge or belief of the fact;
a promise made without any intention of performing it
any other act fitted to deceive;
any such act or omission as the law specially declares to be fraudulent. Explanation.- 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, 1[ or unless his silence is, in itself, equivalent to speech. Illustrations
A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse' s unsoundness. This is not fraud in A.
B is A' s daughter and has just come of age. Here, the relation between the parties would make it A' s duty to tell B if the horse, is unsound.
B says to A--" If you do not deny it, I shall assume that the horse is sound." A says nothing. Here, A' s silence is equivalent to speech.
A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect B' s willingness to proceed with the contract. A is not bound to inform B.