This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The original common-law rule was that an innocent misrepresentation was no ground for repudiating liability on an executory contract nor for informally rescinding a contract during performance or after performance.1 Thus an executed sale can not be avoided by the vendor and the goods recovered for an innocent misrepresentation by the vendee as to his solvency;2 nor can the vendee avoid the sale and resist payment of the price for innocent misrepresentations by the vendor.3 Nor can an employe, after receiving injury in an accident, avoid a contract whereby he accepts compensation from a beneficial order of fellow-employes and releases the railroad company, on the ground that the railroad company had misrepresented the amount which it had contributed towards the expenses of such society.4 A contract of sale can not be avoided for an innocent misrepresentation as to the health of cattle which were sold after an ample opportunity for inspection.5 If the agent of the lessor represents in good faith that the plumbing is in good condition, the lessee can not avoid payment of rent if such representation proves to be false, even if he abandons such premises.6
U. S. (13 Pet.) 26, 10 L. ed. 42; Phillips v. Jones, 12 Neb. 215, 41 Am. Rep. 763, 10 N. W. 708; Trumbull v. Golden, 2 Strobh. Eq. (S. Car.) 141; Mulvey v. King, 39 O. S. 401.
14 Mulvey v. King, 39 O. S. 491 [distinguishing, Taylor v. Leith, 26 O. S. 428].
16 Nash v. Trust Co., 163 Mass. 574, 47 Am. St. Rep. 489, 2S L. R. A. 753, 40 N. E. 1039.
17 Gerner v. Mosher, 58 Neb. 135, 46 L. R. A. 244, 78 N. W. 384.
Alabama. Johnston v. Bent, 93 Ala. 160, 9 So. 581 (as to opinion of solvency).
Arkansas, Bank v. Hale, 104 Ark. 388, 149 S. W. 845.
Illinois. Jones v. Foster, 175 III. 459, 51 N. E. 862.
Iowa. Scroggin v. Wood, 87 la. 497, 54 N. W. 437.
Kentucky. Brooks v. Cannon, 9 Ky. (2 A. K. Mar.) 525; Campbell v. Hill-man, 54 Ky. (15 B. Mon.) 508, 61 Am. Dec. 195; Gill v. Anglo-American Association (Ky.), 52 S. W. 929.
Maryland. Spitze v. R. R., 75 Md. 162, 32 Am. St. Rep. 378, 23 Atl. 307; Standard Horseshoe Co. v. O'Brien, 91 Md. 751, 46 Atl. 346.
Massachusetts. Pike v. Fay, 101 Mass. 134.
Minnesota. Holt v. Sims, 94 Minn. 157, 102 N. W. 386; Kelly v. Pioneer Press Co., 94 Minn. 448, 103 N. W. 330.
New Jersey. Byard v. Holmes, 34 N. J. L. 296; Straus v. Norris, 77 N. J. Eq. 33, 75 Atl. 980.