Practice question
Two share sales both end below the later market price. In one, material facts were fully disclosed; in the other, a proved special duty and serious consent-inducing concealment exist. A reviewer treats later price alone as conclusive fraud in both. Which is correct?
- Every later increase automatically proves identical fraud
- The actual duty, concealment and effect on consent must be distinguished; later price alone does not establish them
- A sale below future price is always void
- Disclosure is legally irrelevant
- The buyer’s director title guarantees every price
Legal references
- Civil Code: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360; Articles 1338-1339,1344, applied to special-fact share-purchase disclosure.
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