A fraudulent misstatement of the terms of an oral contract may avoid the transaction if it misleads the adversary party.1 Thus X as agent for A had sold goods to B, payable on delivery. B represented to A that X had agreed for a sale on credit, and B sent A an alleged copy of a letter from X authorizing such credit. As X was absent when B wrote, A delivered the goods to B on credit. It was held that B could recover the goods.2

5 Heavy v. Commercial National Bank, 27 Utah 222, 101 Am. St. Rep. 966, 75 Ac. 727. See also, North and South Wales Bank v. Macbeth (1908), A. C. 137.

6 Cundy v. Lindsay, L. R. 3 App. 359. See also, obiter in Phelps v. McQuade, 220 N. Y. 232, L. R. A. 1918B, 973, 115 N. E. 441.

Such misrepresentation is at least fraud, for which the injured party may have rescission as against the party who is guilty of fraud: Fay v. Hill, 249 Fed. 415.

7 Oskamp v. Southern Express Co., 61 O. S. 341, 56 N. E. 13.

8 Indiana. Alexander v. Swackhamer, 105 Ind. 81, 55 Am. Rep. 180, 4 N. E. 433, 5 N. E. 908.

Maryland. School Sisters v. Kusnitt, 125 Md. 323, L. R. A. 1916D, 792, 93 Atl. 928.

Massachusetts. Edmunds v. Merchants' Despatch Transportation Co., 135 Mass. 283.

New York. Hentz v. Miller, 94 N. Y. 64.

Ohio, Hamet v. Letcher, 37 0. S. 356, 41 Am. Rep. 519.

Vermont. McCrillis v. Allen, 57 Vt. 505.

Wisconsin. Mayhew v. Mather, 82 Wis. 355, 52 N. W. 436.

1 Ltiienthal v. Herren, 42 Wash. 209, 84 Ac. 829.

2 Rauh v. Waterman, 29 Ind. App. 344, 63 N. E. 42. For a similar case see, Lilienthal v. Herren, 42 Wash. 209, 84 Ac. 829.