Multiple choice

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 contact. Is A bound to inform to B?

  1. Yes

  2. No

  3. Partly Yes

  4. None of the above

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a standard commercial contract, there is no general duty of disclosure (caveat emptor). A party is not bound to disclose private information that might affect the other party's willingness to contract.