(5) 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) 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) 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.
(c) 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.
(d) 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.