Selected Cases Illustrating the Law of Contracts Part I the Principles of Cont
Selected Cases Illustrating the Law of Contracts Part I the Principles of Cont
Arthur Cecil Caporn
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It was put in two ways, either of which was sufficient. One way of putting the case was, " A man is not to be allowed to get a benefit from a statement which he now admits to be false. He is not to be allowed to say, for the purpose of civil jurisdiction, that when he made it he did not know it to be false ; he ought to have found that out before he made it. " The other way of putting it was this : " Even assuming that moral fraud must be shown in order to set aside a contract, you have it wher...e a man, having obtained a beneficial contract by a statement which he now knows to be false, insists upon keeping that contract. To do so is a moral delinquency : no man ought to seek to take advantage of his own false statements. " The rule in equity was settled, and it does not matter on which of the two grounds it was rested. As regards the rule of common law, there is no doubt it was not quite so wide. There were, indeed, cases in which, even at common law, a contract could be rescinded for misrepresentation, although it could not be shown that the person making it knew the representation to be false.
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