Cash Register Co. v. . Townsend

50 S.E. 306, 137 N.C. 652, 1905 N.C. LEXIS 213
Supreme Court of North Carolina·Decided March 28, 1905·Published·Cited by 45 cases

Opinion

Brown, J.,

after stating tbe facts. It is unnecessary to consider tbe fifty-tbree exceptions in tbe record. Tbe plaintiff requested tbe Court to charge -that upon tbe whole evidence tbe plaintiff is entitled to recover of tbe defendant tbe sum of $480. We are of opinion tbat such instruction should have been given, or rather tbat at tbe close of tbe evidence, with tbe admissions of tbe parties, such should have been tbe judgment of tbe Court. It'is admitted tbat tbe defendant purchased tbe cash register at tbe price of $505 and that be paid $25 on it; tbat tbe same was delivered to him, *654 and there is no claim made of any defect in the mechanical construction of the machine. The defendant signed a written contract securing the purchase of the machine and stipulating the dates of payment. The defendant sets up an equitable defense, that the execution of the contract was induced by the false and fraudulent representations and deceit of the plaintiff’s agent who sold him the machine, and asks for a rescission and cancellation of the contract. The burden of proof is therefore upon the defendant to establish such allegations by a preponderance of the evidence, and failing to do so, the plaintiff is entitled to judgment for the balance due upon the contract price.

The allegations relating to deceit and fraud in the answer charge that the agent of the plaintiff stated to the defendant that the use of the cash register would save the expense of a book-keeper; that the books could be kept upon the machine, and that it would not take half the time to keep the defendant’s books as was required without a machine, and that it would save half of one clerk’s time and that the machine could be operated by a person of ordinary intelligence. We note that the answer fails to allege that such representations were not only false but were known by the agent to be false, or, not knowing them to be true, he made them with a wrongful and fraudulent intent, or with reckless or wanton disregard of the truth. Eor such omission the Court might well have rendered judgment upon the pleadings. But as the case was tried before the jury, we have considered it as if such necessary averments were in the answer.

The material elements of fraud, as laid down by the text writers, are, first, misrepresentation or concealment; second, an intention to deceive, or negligence in uttering falsehoods with intent to influence the actions of others; and third, the success of the deceit in influencing the action of the other party. To constitute legal fraud, which will warrant the *655 rescission of a contract, there must be a false representation of a material fact. There are cases in the books where courts of equity have afforded relief from the consequences of innocent misrepresentation. Contracts induced thereby have, in some instances and under peculiar circumstances, been set aside; but in all the cases, the misrepresentation was of a material and subsisting fact. No particular rule can be laid down as to what false representation will constitute fraud, as this must necessarily depend upon the facts of each case, the relative situation of the parties and their means of information. But all the authorities are to the effect that where the false representation is an expression of commendation or is simply a matter of opinion, the courts will not interfere to correct errors of judgment. Walsh v. Hall, 66 N. C., 236. The law will not give relief unless the misrepresentation be of a subsisting fact. Hill v. Gettys, 135 N. C., 375.

What has been called “promissory representation,” looking to the future as to what the vendee can do with the property, how much he can make on it, and, in this case, how much he can save by the use of it, are on a par with false affirmations and opinions as to the value of property, and do not generally constitute legal fraud. Benjamin on Sales (7 Ed.), 483, et seq.; Godron v. Parmalee, 2 Allen (Mass.), 212; Long v. Woodman, 58 Me., 52, and cases cited.

Mr. Clark in his work on Contracts states in substance that commendatory expressions or exaggerated statements as to value or prospects, or the like, as where a seller puffs up the value and quality of his goods, or holds out flattering prospects of gain, are not regarded as fraudulent in law. (Pp. 332-334). It is the duty of the purchaser to investigate the value of such expressions of commendation. He cannot safely rely upon them. If he does, he cannot treat it as fraud either for the purpose of maintaining an action of deceit or for the purpose of rescinding a contract at law or in *656 equity. Saunders v. Hatterman, 24 N. C., 32; 14 Am. & Eng. Enc. (2 Ed.), 34, and cases cited.

Mr. Kerr in bis work on Fraud and Mistake, at page 83, says: “A misrepresentation to be material should be in respect of an ascertainable fact as distinguished from a mere matter of opinion. A representation which merely amounts to a statement of opinion goes for nothing, though it may not be true, for a man is not justified in placing reliance on it.”

Again, “A man who relies on such affirmation made by a person whose interest might so readily prompt him to 'invest the property with exaggerated value does so at his peril, and must take the consequences of his own imprudence.”

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Cash Register Co. v. . Townsend, 50 S.E. 306, 137 N.C. 652, 1905 N.C. LEXIS 213 (N.C. 1905).

50 S.E. 306 (Cash Register Co. v. . Townsend) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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