Sahil sells by auction to Rohan a horse which Sahil knows to be unsound. The horse appears to be sound, but Sahil knows about the unsoundness of the…

CA Foundation · Business Laws · MTP · May 2026
Sahil sells by auction to Rohan a horse which Sahil knows to be unsound. The horse appears to be sound, but Sahil knows about the unsoundness of the horse. Is this contract valid in the following circumstances under the Indian Contract Act, 1872: (A) If Sahil says nothing about the unsoundness of the horse to Rohan. (B) If Sahil says nothing about it to Rohan who is Sahil’s son. (C) If Rohan says to Sahil “If you do not deny it, I shall assume that the horse is sound.” Sahil says nothing.

Suggested Answer and Working Notes:

If Priya had not handed over the vehicle to Sony, the contract could have been avoided as Priya’s father refused to fix the price of the vehicle.

Topics: The Indian Contract Act, 1872

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