The Law of Contracts / By John William Smith

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Saylor, 6 Gill & Johns. 54; Munroe v. Pritchett, 16 Alabama, 485.
Such a course of decision perfectly accords with the remark of Judge Story, that "the affirmation of what one does not know or helieve to he true, is equally in morals and law as unjustifiable as the affirmation of what is known to be positively false;" while it is not at all inconsistent with the language quoted from Ormrod v. Huth, that " if the representation was honestly made, and believed at the time to he true, by the party
... making it, although not true in point of fact, it is not a fraudulent representation." The question of good faith is one, upon the evidence, for the jury : Lord v. Colley, 6 New Hamp. 99 ; Bokee v. Walker, 2 Harris, 139 ; and the plaintiff can recover, either by showing the positive statement and the defendant's knowledge of its falsity, or by showing the positive statement, and proving that the defendant had not and could not have had any knowledge in the matter. Either of these presents a case of moral fraud, and both of them are very different from that of a statement, false indeed in fact, yet honestly believed to be true.

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