FRAUDULENT CONTRACTS, 159 



of acquiescing in it, or of avoiding it (/). But until the 

 party defrauded disaffirms the contract it remains good {m) . 



If a party he induced to purchase an article hy fraudulent Where Fraud 

 representations of the seller respecting it, he may treat it '^^ practised 

 as a good contract, or the moment lie chooses to declare it Buyer, 

 void, he may recover the price from the seller (o). 



If, when it is avoided, nothing has occurred to alter Except where 

 the position of affairs, the rights and remedies of the ^.*^ works m- 

 parties are the same as if it had been void from the ■'"'^ ^°^' 

 beginning ; but if any alteration has taken place, their 

 rights and remedies are subject to the effect of that 

 alteration {p). Thus where the plaintiff was induced by 

 the Fraud of the defendants to become a shareholder in 

 a company, it was held, that as he had in the interval 

 between the making of the contract and the discovery of 

 the Fraud, received dividends, and otherwise dealt with 

 the jiroperty, he could not treat the contract as void, and 

 sue for money had and received ; but, though he could 

 not rescind the contract, inasmuch as such rescission would 

 work injustice, yet he might bring an action on the 

 deceit, and recover his real damages {q). 



But if after discovering the Fraud he continue to deal Where he 

 with the article as his own, he cannot recover back the jpl^Q^^fw? 

 money from the seller (r). And the right to repudiate article. 

 the contract is not afterwards revived by the discovery 

 of another incident in the Fraud (r). 



A sale of goods effected by the Fraud of the buyer is }Vhere Fraud 

 not absolutely void, but the seller may elect to treat it as l^^jo^^t^e*^*^ 

 a valid transaction (s), or has a right to treat the contract Seller, 

 as a nullity, and recover the value of the goods in an 

 action of Trover (/). 



If he does not treat the sale as void before the buyer Resale by the 

 has resold the goods to an innocent vendee (.s), or pledged ^^g^ent ^^ 

 them for a hond fide advance {u), the property will pass Vendee, 

 to the vendee. 



{!) Murray v. Mann, 2 Ex. 541 ; (17) Clarke v. Dickson, 27 L. J., 



TJrquhart v. jVarp/icrson, L. R., 3 Q. B. 223. 

 App. Cas. 831; Story on Sales, 126. (;•) Campbell v. Fleming, 1 A. & 



[m) Dawes v. Harness, L. R., 10 E. 40. 

 C. P. 166; 44 L. J., C. P. 194; (.s) White v. Garden, 20 L. J., 



Cloiigh V. London and North Western C. P. 166. 



Rail. Co., L. E,., 7 Ex. 26, 34; 41 (t) Ferguson v. Carrington, 9 B. 



L. J., Ex. 17; 25 L.T., N. S. 708. & C. 59; S. C. 3 C. & P. 457; load 



. {0) Murray y. Mann, 2 Ex. 541. v. Green, 15 M. & W. 216, 221. 



[p) See Broom's Maxims, 4th ed. {a) lungsford v. 3ferry, 11 Ex. 



293; and per Blackburn, J., R. v. 577. 

 Saddlers' Co., 32 L. J., Q. B. 343. 



