A false representation, to constitute fraud, must actually deceive; that is, it must be relied on by the other party, and must induce him to act to his prejudice. If it is not believed, or the party disregards it, and makes inquiries for himself, there is no fraud.5' In a leading case on this subject it appeared that the defendant had bought a cannon from the plaintiff, having a defect in it which rendered it worthless, and the plaintiff had endeavored to conceal the defect by inserting a metal plug in the weak spot. The defendant never inspected the cannon. He accepted it, and, in using it, it burst. It was held that the attempted fraud, having had no operation upon the mind of the defendant, did not exonerate him from paying for the gun. "If," said the court, "the plug which it was said was put in to conceal the defect had never been there, his position would have been the same; for, as he did not examine the gun, or form any opinion as to whether it was sound, its condition did not affect him." 57 If the representation was one calculated to induce the other party to make the contract, the presumption is that he was influenced by it; and, in order to take away his right to relief on the ground of fraud, it must be shown that he did not rely on it.58

52 Peek v. Gurney, L. R. 6 H. L. 377, 410. And see Nash v. Trust Co., 159 Mass. 437, 34 N. E. 625; Davidson v. Nichols, 11 Allen (Mass.) 514. It has been held that it could not be said, as a matter of law, that false representations concerning the value of certain stock, by which a person was induced to buy, may not have continued in his mind, and induced him to buy more of the stock a year later. Reeve v. Dennett, 145 Mass. 23, 11 N. E. 938. See "Corporations," Dec. Dig. (Key-No.) & 80; Cent. Dig. §§ 244,-264,.

53 Reese River Min. Co. v. Smith, 4 H. L. Cas. 64; Vreeland v. Stone Co., 29 N. J. Eq. 188. See "Corporations," Dec. Dig. (Key-No.) § 80; Cent. Dig. §§ 244-264.

54 Polhill v. Walter, 3 Barn. & Adol. 114. A buyer of goods cannot avoid the effect of knowingly false statements as to his financial condition by showing that he intended and expected to pay for them. Judd v. Weber, 55 Conn. 267, 11 Atl. 40. See, also, ante, p. 274. Although the maker of the representation believes it to be true, if he discovers that it is false before it is acted on, and does not disclose the fact, he is guilty of fraud. Loewer v. Harris, 57 Fed. 368, 6 C. C. A. 394; Guilford School Tp. v. Roberts, 28 Ind. App.355. 62 N. E. 711. See "Contracts," Dec. Dig. (Key-No.) § 94 Cent. Dig. §§ 420-1,30; "Fraud," Deo. Dig. (Key-No.) § 13; Cent. Dig. §§ 3-5.

55 Polhill v. Walter, 3 Barn. & AdoL 114. See "Fraud," Dec. Dig. (Key-No.) § 13; Cent. Dig. §§ 3-5.

The representation need not have been the sole inducement to enter into the contract. If it was a material inducement - that is, if it so contributed as an inducement that without it the contract would not have been made - it is sufficient.59

56 Arkwright v. Newbold, 17 Ch. Div. 324; Ming v. Woolfolk, 116 U. S. 599, 6 Sup. Ct 489, 29 L. Ed. 740; Humphrey v. Merriam, 32 Minn. 197, 20 N. W. 138; Crehore v. Crehore, 97 Mass. 330, 93 Am. Dec. 98; Runge v. Brown, 23 Neb. 817, 37 N. W. 660; Brackett v. Griswold, 112 N. Y. 454, 20 N. B. 376; Craig v. Hamilton, 118 Ind. 565, 21 N. E. 315; Priest v. White, 89 Mo. 609, 1 S. W. 361; Buschman v. Codd, 52 Md. 202; Farrar v. Churchill, 135 U. S. 616, 10 Sup. Ct. 771, 34 L. Ed. 246; Hubbard v. Weare, 79 Iowa, 678, 44 N. W. 915; Cobb v. Wright, 43 Minn. 83, 44 N. W. 662; Winier v. Smith, 22 Or. 469, 30 Pac 416; Pennybacker v. Laidley, 33 W. Va. 624, 11 S. E. 39; Darby v. Kroell, 92 Ala. 607, 8 South. 384; Pratt v. Burhans, 84 Mich. 487, 47 N. W. 1064, 22 Am. St Rep. 703; Fowler v. McCann, 86 Wis. 427, 56 N. W. 1085; Black v. Black, 110 N. C. 398, 14 S. E. 971; Dady v. Condit, 163 I11. 511, 45 N. E. 224; Brady v. Evans, 78 Fed. 558, 24 C. C. A. 236; Wagner v. Insurance Co., 90 Fed. 395, 33 C. C. A. 121. See "Contracts," Dec. Dig. (Key-No.) § 94; Cent. Dig. §§ 420-430.

57 Horsfall v. Thomas, 1 Hurl. & C. 90, 99. See "Contracts," Dec. Dig. (Key-No.) § 94; Cent. Dig. §§ 420-430; "Sales," Dec. Dig. (Key-No.) § 38; Cent. Dig. §§ 65-85.

58 Redgrave v. Hurd, 20 Ch. Div. App. 21; Hicks v. Stevens, 121 I11. 186, 11 N. E. 241; Garrison v. Electrical Works, 59 N. J. Eq. 440, 45 Atl. 612; Dashiel v. Harshman, 113 Iowa, 283, 85 N. W. 88; Grim v. Byrd, 32 Grat. (Va.) 293. See "Sales," Dec. Dig. (Key-No.) § 38; Cent. Dig. §§ 65-85.

59 JAMES v. HODSDEN, 47 Vt 127, Throckmorton Cas. Contracts, 195, in which it is said, per Redfield, J.: "It is enough that the party was deceived and cheated and the defendant's falsehood and fraudulent practices contributed to that end;" Peek v. Derry, 37 Ch. Div. 541, L. R. 14 App. Cas. 837; Safford v. Grout, 120 Mass. 20; Burr v. Willson, 22 Minn. 206; Lebby

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