________ occurs when one party does not say something about certain facts that he is under an obligation to reveal.

A) Passive fraud
B) Fraud inducement
C) Fraud in inception
D) Active Fraud

Passive Fraud

A failure to reveal some material fact about the subject matter of a contract that one party is obligated to reveal to the other party and that intentionally deceives that second party, leading him or her into a damaging contract. Also called concealment and nondisclosure.

Obligation

A legal or moral responsibility or duty that compels someone to act or refrain from acting in a certain manner.

Certain Facts

Specific pieces of information that are true, verified, and indisputable.