Bates v. Cashman
| Decision Date | 24 May 1918 |
| Citation | 119 N.E. 663,230 Mass. 167 |
| Parties | BATES v. CASHMAN. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
Report from Supreme Judicial Court, Essex County.
Suit by N. E. Bates against Daniel Cashman. On report from a single justice of the Supreme Judicial Court. Bill dismissed.
A person seasonably may rescind a contract to which he has been induced to become a party in reliance upon false, though innocent, misrepresentations' respecting a cognizable material fact, made as of his own knowledge by the other party, who stated as a fact what he did not know to be true, and what was in fact false.
Defendant, who was induced to contract by the innocent misrepresentations of plaintiff as to the existence of a fact which did not in fact exist, was not prevented from setting up the defense of misrepresentation by his writing plaintiff as to other reasons for declining to perform, where he expressly reserved different grounds for his refusal; defendant not having acted dishonestly, and plaintiff not having been misled as to his harm.
Richard W. Hale and John M. Maguire, both of Boston, for plaintiff.
Ernest Foss, of Newburyport, for defendant.
This is a suit to recover for the breach of a written contract to buy the stocks and bonds of the Newburyport Cordage Company. The securities were the means by which to convey control of land with a factory and machinery. There is no controversy that the contract was made. The defendant contends that he was induced to sign it by such false representations by the plaintiff as release him from obligation to perform. The case was referred to a master. It is reserved upon his report with exceptions thereto and the pleadings. There is no report of evidence.
[1] It has been found that during the negotiations preceding the contract the plaintiff represented that a right of way, which was a substantial factor of value in the real estate, was owned by the Newburyport Cordage Company and could not be interfered with. This representation was untrue. The plaintiff did not know that it was untrue. The defendant relied upon it and would not have signed the contract if he had known that it was false. A person seasonably may rescind a contract to which he has been induced to become a party in reliance upon false though innocent misrepresentations respecting a cognizable material fact made as of his own knowledge by the other party to the contract. The fraud in such a representation consists in stating as a fact that which is not known positively to be a fact. It is no excuse for making such a statement as of one's own knowledge that it was believed to be true or that the true state of affairs had been forgotten. It is fraud to state a fact as true of one's own knowledge when he has no such knowledge. ‘This rule has been steadily adhered to in this commonwealth and rests alike on sound policy and on sound legal...
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Royal-Globe Ins. Co. v. Craven, ROYAL-GLOBE
...or that the other party has been misled to his harm, or that he is estopped on any other ground," quoting Bates v. Cashman, 230 Mass. 167, 168-169, 119 N.E. 663 [1918] Because Craven's notice was not prompt, and because Royal-Globe was not estopped from defending against liability on the ba......
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McGrath v. C.T. Sherer Co.
...material facts. Stewart v. Joyce, 201 Mass. 301, 310, 87 N. E. 613;Ginn v. Almy, 212 Mass. 486, 492, 493, 99 N. E. 276;Bates v. Cashman, 230 Mass. 167, 119 N. E. 663. It is not necessary that the false representations should have been the sole or even predominant motive actuating the plaint......
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Sheehan v. Commercial Travelers' Mut. Acc. Ass'n
...v. Great American Indemnity Co. (Mass.) 185 N. E. 359;Devens v. Mechanics' & Traders' Inc. Co., 83 N. Y. 168. See also Bates v. Cashman, 230 Mass. 167-169, 119 N. E. 663; Williston on Contracts, § 742. In view of the lack of evidence of an intention on the part of the defendant to relinquis......
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McGrath v. C.T. Sherer Co.
... ... material facts. Stewart v. Joyce, 201 Mass. 301, ... 310, 87 N.E. 613; Ginn v. Almy, 212 Mass. 486, 492, ... 493, 99 N.E. 276; Bates v. Cashman, 230 Mass. 167, ... 119 N.E. 663. It is not necessary that the false ... representations should have been the sole or even predominant ... ...