This section is from the book "A Commentary On The Law Of Contracts", by Francis Wharton. Also available from Amazon: A Commentary On The Law Of Contracts.
Fraud is an intentional distortion of the truth, sec 232.
Party defrauded may rescind or sue for damages, sec 232 a.
Contracts may be divisible in respect to fraud, sec 233.
False representations may be estoppels, sec 234.
When both parties are involved in fraud, neither can recover, sec 235.
When there is fraudulent misrepresentation, good motives are no defence, sec 236.
False representation must have been with intent to be acted on by party injured, sec 237.
Fraud need not have been lucri causa, sec 238.
Fraudulent intention to be inductively proved, sec 239.
And so of lalsity, sec 240.
Reckless misstatement imposes responsibility, sec 241.
Must be causal relation between fraud and injury, sec 242.
Fraud need not be the sole motive, sec 242 a.
Injury must be actually sustained, sec 243.
The losing party must believe the false statement, sec 244.
And must be without immediate means of testing: contributory negligence, sec 245.
False statement as to collateral matter does not avoid, sec 246.
Party not bound by third party's misstatement or fraud, sec 247.
Fraud may be in conduct as well as in words, sec 248. When non-disclosure of qualification leaves statement untrue, this is a false representation, sec 249. Non-disclosure of facts which superior business sagacity would discover does not avoid contract, sec 250. Party suppressing must, to be liable, actively negative fact suppressed, sec
251. Neither party is bound to correct the other's misconceptions, sec 252. Nor is a party bound by his silence when not called on to speak, sec 253. When there is a fiduciary relation, disclosure becomes necessary, sec 254. Proposer of business bound to give fair statement, sec 255. So of promotor of company, sec 255 a. Applicants for insurance bound to state all material facts, sec 256. So with parties to family negotiations,.
False promise not a false statement, sec
257. Intention not to pay may be a false pretence, sec 258. False opinion not a false pretence, sec .
259. And so of conjectural value, sec 260. Misrepresentations to be distinguished from puffs, sec 261. False representations of solvency bind,.
And so of false warranty, sec 263. General statement of law does not avoid; otherwise as to specific opinion, sec 264. Marriage voidable when under mistake as to person, sec 265. Fraudulent marriage settlement may be set aside, sec 266. Employment of puffer at auction may be a fraud, sec 267. Vendor may set aside auction sale if bidders were kept back, sec 268. Agent's statement during negotiations binds principal, sec 269. False statement in range of authority binds, sec 270. But statements, when contractual, must be coincident, sec 271.
Statement must be within range of authority, sec 272.
Reports to principal bind, sec 273.
General agent may make contractual admissions sec 274.
Corporations necessarily so bound, sec 275.
Shareholders relieved from contract on proof of fraud, sec 276.
Corporation liable for agent's deceit, but not directors, sec 277.
Agency must be established by proof aliunde, sec 278.
Principal not liable for agent's collusive agreements with third party, nor in deceit for agents' independent false statements, sec 279.
 
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