Equity: An Analysis And Discussion of Modern Equity Problems, With Notes On Ohio Cases

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Moreover, there is no bright line which divides mistake from either fraud or accident. Yet mistake is dis- tinguishable from both. Accident creates a change in the actual situation of the parties — as destruction of the subject matter of a bargain by the act of God. It contains no mental element. Mistake, on the other hand, leaves the actual facts untouched. It involves af- firmative action by the human mind; It consists In forming an in- correct mental picture of the situation. If this incorre...ct picture is § 380] RESCISSION. 505 and there is also the large class of cases of fraud upon creditors which rarely contain any element of misrepre- sentation.
Courts have wisely refrained, however, from at- tempting to define fraud because even tho they should succeed in framing a definition which would cover all the adjudicated cases on the subject, it might later be a handicap to giving relief in a new case not falling within the definition.* Fraud is one of the earliest subjects of equity jurisdiction and until the action on the case* for de- ceit was devised the sole relief seems to have been in equity.


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