AILET 2016 LLM Question Paper with answer key for online practice

Question : 38 of 100

Marks: +1, -0

Ghanshyam and Afzal are good friends. They are traders and together keep on doing business transaction very often. In April 2016, they enter in a contract. Afzal has certain confidential information from his private sources about some change in prices that would affect Ghanshyam’s willingness to proceed with the contract. As per Indian Contract Act, 1872, identify which of the following is applicable.

Afzal is bound to inform Ghanshyam about the change in price because he is a close friend to him
Afzal is bound to inform Ghanshyam about the change in price because they have been doing many business transactions together
Afzal is bound to inform Ghanshyam about the change in price because otherwise that would amount to fraud since it would clearly show Afzal’s intentions to mislead Ghanshyam
Afzal is not bound to inform Ghanshyam about the change in price

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