Exceptions to this rule that silence cannot constitute a misrepresentation

The general rule is that silence cannot constitute a misrepresentation. A party to a contract is therefore under no duty to disclose all material facts.

Explain the exceptions to this rule.

The following facts must be disclosed

  • Those that can influence the other parties’ decision.
  • Changed circumstances which affect the truthfulness of facts already given if the contract has not yet been entered to.
  • Facts likely to increase the liability of the other party

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