Lockridge v. Foster

Citations

• 5 Scam. 569

Syllabus

<p>Error to Sangamon.</p> <p>1. Contract — good faith required. On the principles of equity and justice, a contract to be obligatory must be justly and fairly made. The contracting parties are bound to deal honestly, and act in good faith with each other. There should be a reciprocity of candor and fairness. Both should have equal knowledge concerning the subject matter of the contract. Especially ought all the facts and circumstances which are likely to influence their action to be made known. If they have not mutually this knowledge, nor the same means of obtaining it, it is then a duty incumbent on the one having the superior information, to disclose it to the other. In making the disclosure, he is bound to act in good faith, and with a strict regard to truth ; if he makes false representations respecting material facts, or intentionally conceals or suppresses them, he acts fraudulently, and renders himself responsible for the consequences whicii may result, (a) </p> <p>2. FRA.U'D — supfiressio veri. Fraud may consist as well in a sufpressio veri, as in a stiggestio falsi, for in either case it may operate to the injury of the innocent party.</p> <p>3. Same — false representation by vendor. A false representation by a vendor, which influences the conduct of the other party, and induces him to make the purchase, will vitiate and avoid the contract. A court of equity will not enforce and carry into effect contracts thus unfairly and fraudulently made; and when the injured party invokes its aid in proper lime, and the circumstances of the case [*570] will permit it to be done, the contract will be rescinded, and the parties restored to their original rights.</p> <p>4. Contract — rescission, or performance. Where a bill in chancery is filed for the rescission of a contract for the sale of a tract of land, the title to part of which the vendor did not possess, and the bill prays that the contract may be rescinded or specifically performed, the court has jurisdiction o