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    (1889) LR 14 AC 337 at P. 374. Ibid

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    This document discusses the definition of fraud and whether fraud occurred in a business transaction between Mr. Steve Rovers and Mr. Tony Snark. 1. Fraud involves intentionally deceiving another party through false statements, concealment of facts, broken promises, or other acts meant to deceive. 2. Mr. Rovers, as the manufacturer, was under a duty to disclose defects found in machines to Mr. Snark, his childhood friend, due to their relationship of trust. By remaining silent about the defects, despite a duty to speak, Mr. Rovers committed fraud through concealment. 3. Mr. Snark's trust in Mr. Rovers, shown by dismissing the idea of

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    (1889) LR 14 AC 337 at P. 374. Ibid

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    tayyaba reda
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    This document discusses the definition of fraud and whether fraud occurred in a business transaction between Mr. Steve Rovers and Mr. Tony Snark. 1. Fraud involves intentionally deceiving another party through false statements, concealment of facts, broken promises, or other acts meant to deceive. 2. Mr. Rovers, as the manufacturer, was under a duty to disclose defects found in machines to Mr. Snark, his childhood friend, due to their relationship of trust. By remaining silent about the defects, despite a duty to speak, Mr. Rovers committed fraud through concealment. 3. Mr. Snark's trust in Mr. Rovers, shown by dismissing the idea of

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    This document discusses the definition of fraud and whether fraud occurred in a business transaction between Mr. Steve Rovers and Mr. Tony Snark. 1. Fraud involves intentionally deceiving another party through false statements, concealment of facts, broken promises, or other acts meant to deceive. 2. Mr. Rovers, as the manufacturer, was under a duty to disclose defects found in machines to Mr. Snark, his childhood friend, due to their relationship of trust. By remaining silent about the defects, despite a duty to speak, Mr. Rovers committed fraud through concealment. 3. Mr. Snark's trust in Mr. Rovers, shown by dismissing the idea of

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    54 views3 pages

    (1889) LR 14 AC 337 at P. 374. Ibid

    Uploaded by

    tayyaba reda
    This document discusses the definition of fraud and whether fraud occurred in a business transaction between Mr. Steve Rovers and Mr. Tony Snark. 1. Fraud involves intentionally deceiving another party through false statements, concealment of facts, broken promises, or other acts meant to deceive. 2. Mr. Rovers, as the manufacturer, was under a duty to disclose defects found in machines to Mr. Snark, his childhood friend, due to their relationship of trust. By remaining silent about the defects, despite a duty to speak, Mr. Rovers committed fraud through concealment. 3. Mr. Snark's trust in Mr. Rovers, shown by dismissing the idea of

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    of 3

    Argument 1-

    Fraud means and includes any of the following acts committed by a party to a contract, or with
    his connivance, or by his agent with intent to deceive another party thereto or his agent, or to
    induce him to enter into the contract. –

    (1) the suggestion, as a fact, of that which is not true, by one who does not believe it to be
    true;

    (2) the active concealment of a fact by one having knowledge or belief of the fact;

    (3) a promise made without any intention of performing it;

    (4) any other act fitted to deceive;

    (5) any such act or omission as the law specially declares to be fraudulent.

    Referring to the above mentioned definition of the fraud it is very humbly submitted
    before the honorable sc that the essentials of the fraud as made out clear in the
    English case of Derry v. Peek 1 is:

    1. There should be an intention to deceive another party

    2. any other act fitted to deceive.

    Linking the law and the authority given in the case of Derry v. Peek2, it is asserted that
    Mr. Steve Rovers was the manufacturer of LPT machine ( for the production of
    Lobanza and other medicines ) was the very business centered person and it is very
    clearly evident from the facts “ Para 12 in which it is mentioned that a week prior
    to the sale of three LPTs on 14th august 2017, Mr. Steve thoroughly received a
    detailed report from the auditor categorically highlighting certain patent defects
    in those Machines .faced with extreme pressure to meet the rising demands. Mr.
    Steve ignored the report and failed to disclose that information to HPC Ltd.”

    1
    (1889) LR 14 AC 337 at p. 374.
    2
    Ibid
    By stating these facts the council is trying to assert that depending totally on his profit
    making and meet the rising demands of the companies he compromised the qualities
    of the manufacturing machines which would have resulted in lower productivity of
    medicines in his fair vision. So by this there can be an intention to deceive by Mr.
    Rovers. Here we assert that there is mere silence and no concealment of any
    information as there were no steps to conceal any of the fact or information by Mr.
    Steve by any of his acts rather there was a mere silence in regards of the information.
    As we can take instances from the statement of fact .

    When mere silence in fraud

    Silence may become deceptive in certain cases :

    1. Duty to speak ( contract uberrima fides)

    The first such case when a person keep silence under duty to speak. Duty to speak arrises
    where one contracting party reposes trust and confidence in the other. For example , a
    father selling a horse to his son must tell him if the horse is unsound, as the son is
    likely to rely upon his father.

    The duty to disclose the truth will arise in all cases where one party reposes, and the other
    accepts, confidence.3

    Therefore, linking the above stated law to the statement of facts it is clearly evident that
    Mr. Tony Snark was a childhood friend of Mr. Steve rovers which is stated in the
    statement of facts para no. 3. So here there is a relationship between Mr. Tony Snark
    and Mr. Steve Rovers and due to that relationship Mr. tony snark reposes trust on Mr.
    Steve rovers so being silent on a fact which was a duty of Mr. steve rovers towards
    his friend has constituted fraud in the present case. Herein, in the present case the
    relationship of trust between Mr. Tony Snark and Mr. Steve rovers is clearly evidenty
    by the facts in“ para 6 starting from line 5, were Mr. Snark was requested by one
    of the colleagues of Mr. steve to conduct a routine check on the machines in
    coming few days. Mr. Snark evidently amused by the preposterous idea of
    doubting his friend, he never the less nodded and smiled.” Here by merely

    3
    Saroj Agarwal v. L.I.C, (2004) 4 CLT 490 (jhar).
    avoiding the warning to check the machines Mr. Snark has showed his trust towards
    Mr. Steve Rovers.

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