FRAUDULENT CONTRACTS. 155 



Where a Representation is made and a Fraud practised Eepresenta- 

 througli the medium of a third party, and damage has re- tjon through a 

 suited, the vendor is liable to an action ; and this was so ^"^ ^^ ^' 

 held by the Comi: of Common Pleas upon the following 

 facts : — It appeared that the defendant, who was about to 

 sell a Public-house, falsely represented to B., who had 

 agreed to piu-chase it, that the Keceipts were worth 180/. a 

 month ; and B., to the knowledge of the defendant, had 

 communicated the Representation to the plaintiff, who in 

 consequence became the pm'chaser of it, and afterwards 

 found that the receipts had not been woi-th so much (r). 



Where a third party makes a fraudulent Representation Representa- 

 with regard to an article about to be sold, he is liable to *|^" J'J' ^ 

 the piu'chaser. Thus where the plaintiff ^\'as about piu'- 

 chasing a Horse from a party who waiTanted him sound, 

 and who, for the corroboration of his statement, referred 

 him to the defendant, who warranted the Horse sound in 

 the wind : Mr. Baron Alderson said, " the merits are, 

 whether or not the defendant made a Fraudutcnt Repre- 

 sentation. It is proved that he did. He comes here to 

 defend himself from the charge of having made a Fraudu- 

 lent Pepresentation on the occasion of the sale." The 

 Jury found a verdict for the j>laintiff («•) . 



An action however does not lie for a false Representation, A boudfdc 

 whereby a party being induced to piu-chase the subject- Representa- 

 matter of the Pepresentation even from a third party, has 

 sustained damage, if the Representation appear to have 

 been made bond fide mider a reasonable and well-groimded 

 belief that the same was true, as the Pule Caveat emptor 

 applies (a-). 



A person should be careful how he gives credit to any Representa- 

 statement made by a tliird party as to the character and tjonasto 

 ability of the person ^\itli whom he is about to deal ; be- ^^ ^ ' 

 cause under 9 Geo. 4, c. 14, s. 6, "no action lies to charge a 

 person upon or by reason of any Representation ov Assurance 

 made or given relating to the character, conduct, ability, 

 trade, or dealings of any other person, to the intent that , 

 such other person may obtain credit, money or goods 



[v) Pllinoi-ev. IIoodjb'B'mg.'N.G. (iv) Mash v. Densliam, 1 M. & 



97 ; see also Swift v. Wintcybotiom, Rob. 4-12. 



L. R., 8 Q. B. 244, 253 ; 42 L. J., (.*:) Shreivshury v. Blount, 2 M. & 



Q.B.lll; Swift v.Jeu-sbiir!/, L.R., G. 475; S. C. 2 Snott, N. R. 588 ; 



9 Q. B. 301; 43 L. J., Q. B. 56; Haijcmft v. Creasy, 2 East, 92; 



Richardson v. Sylrcslcr, L. R., 9 Q. Oniirod v. H/ith, 14 M. & W. 6G4. 

 B. 34; 43L. J.,Q. B. 1. 



