A Treatise on the Law of Contracts (Volume 1)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1856 Excerpt: ...careful in trusting to them. Where matters of fact are misrepresented by the seller, he is guilty either of fraud or mistake, and the buyer has his remedy against him in either case.1 842. So, also, every concealment of defects which is made by artifice, and for the purpose of deceiving the buyer, vitiates the sale. But the vendor is under no obligation to give all of the information that he himself possesses in regard to the article sold. The concealment, which will vitiate a contract, must be in respect of some material fact, which one party, under the circumstances, is bound in conscience and legal duty to disclose to the other. For the general rule of the common law is caveat emptor, and unless, as we have seen, there be a warranty, or a fraudulent misrepresentation or concealment, the vendee buys at his own risk.2 Bat if there be any trust or confidence reposed in the seller by the buyer, which the concealment would violate, the sale is fraudulent. 843. In regard to extrinsic circumstances, forming no part of the sale, but connected therewith, and forming an inducement thereto, or enhancing the value of the thing sold, there is no obligation, on the part of the seller or buyer, to disclose his knowledge of them. Thus, a vendee is not bound to disclose the fact that the land, which he contracts to buy, contains a mine, although the vendor be ignorant of the fact; and although it would greatly enhance the value of the land.3 So, also, he is not bound to disclose the rise of the market; or any other knowledge, which he may have from private sources, and unknown to the seller. But if a vendor should sell an estate, and conceal the fact that there were incumbrances upon it, of which the buyer was ignorant, --or that he had no title; or should s...