Non-disclosure of material information in executing transaction constitutes deception, even if it was ‎done unintentionally

A car trading company sold a car, which was later discovered to have been with a replaced engine and defects in the chassis, all of which were not disclosed to the purchaser's attention prior to the transaction. The Seller argued that the non-disclosure was done in good faith as a result of a human error, because the salesperson who carried out the transaction was also unaware of them.

The Court accepted the claim and held that the non-disclosure of material details is misrepresentation even if made unintentionally and in good faith. The seller has an advantage over the purchaser both in terms of knowledge and in terms of accessibility to full and accurate data on the vehicle and thus the Court ordered cancellation of the transaction and refund and compensation for the purchaser.