the common law-µÚ64ÕÂ
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they¡¡can¡¡be¡¡material¡¡is¡¡that¡¡a¡¡belief¡¡in¡¡their¡¡being¡¡true¡¡is¡¡likely¡¡to¡¡have¡¡led¡¡to¡¡the¡¡making¡¡of¡¡the¡¡contract¡£
It¡¡is¡¡not¡¡then¡¡true£»¡¡as¡¡it¡¡is¡¡sometimes¡¡said£»¡¡that¡¡the¡¡law¡¡does¡¡not¡¡concern¡¡itself¡¡with¡¡the¡¡motives¡¡for¡¡making¡¡contracts¡£¡¡On¡¡the¡¡contrary£»¡¡the¡¡whole¡¡scope¡¡of¡¡fraud¡¡outside¡¡the¡¡contract¡¡is¡¡the¡¡creation¡¡of¡¡false¡¡motives¡¡and¡¡the¡¡removal¡¡of¡¡true¡¡ones¡£¡¡And¡¡this¡¡consideration¡¡will¡¡afford¡¡a¡¡reasonable¡¡test¡¡of¡¡the¡¡cases¡¡in¡¡which¡¡fraud¡¡will¡¡warrant¡¡rescission¡£¡¡It¡¡is¡¡said¡¡that¡¡a¡¡fraudulent¡¡representation¡¡must¡¡be¡¡material¡¡to¡¡have¡¡that¡¡effect¡£¡¡But¡¡how¡¡are¡¡we¡¡to¡¡decide¡¡whether¡¡it¡¡is¡¡material¡¡or¡¡not£¿¡¡If¡¡the¡¡above¡¡argument¡¡is¡¡correct£»¡¡it¡¡must¡¡be¡¡by¡¡an¡¡appeal¡¡to¡¡ordinary¡¡experience¡¡to¡¡decide¡¡whether¡¡a¡¡belief¡¡that¡¡the¡¡fact¡¡was¡¡as¡¡represented¡¡would¡¡naturally¡¡have¡¡led¡¡to£»¡¡or¡¡a¡¡contrary¡¡belief¡¡would¡¡naturally¡¡have¡¡prevented£»¡¡the¡¡making¡¡of¡¡the¡¡contract¡£
If¡¡the¡¡belief¡¡would¡¡not¡¡naturally¡¡have¡¡had¡¡such¡¡an¡¡effect£»¡¡either¡¡in¡¡general¡¡or¡¡under¡¡the¡¡known¡¡circumstances¡¡of¡¡the¡¡particular¡¡case£»¡¡the¡¡fraud¡¡is¡¡immaterial¡£¡¡If¡¡a¡¡man¡¡is¡¡induced¡¡to¡¡contract¡¡with¡¡another¡¡by¡¡a¡¡fraudulent¡¡representation¡¡of¡¡the¡¡latter¡¡that¡¡he¡¡is¡¡a¡¡great¡grandson¡¡of¡¡Thomas¡¡Jefferson£»¡¡I¡¡do¡¡not¡¡suppose¡¡that¡¡the¡¡contract¡¡would¡¡be¡¡voidable¡¡unless¡¡the¡¡contractee¡¡knew¡¡that£»¡¡for¡¡special¡¡reasons£»¡¡his¡¡lie¡¡would¡¡tend¡¡to¡¡bring¡¡the¡¡contract¡¡about¡£
The¡¡conditions¡¡or¡¡grounds¡¡for¡¡avoiding¡¡a¡¡contract¡¡which¡¡have¡¡been¡¡dealt¡¡with¡¡thus¡¡far¡¡are¡¡conditions¡¡concerning¡¡the¡¡conduct¡¡of¡¡the¡¡parties¡¡outside¡¡of¡¡the¡¡itself¡£¡¡£§327£§¡¡Still¡¡confining¡¡myself¡¡to¡¡conditions¡¡arising¡¡by¡¡construction¡¡of¡¡law£»that¡¡is¡¡to¡¡say£»¡¡not¡¡directly¡¡and¡¡in¡¡terms¡¡attached¡¡to¡¡a¡¡promise¡¡by¡¡the¡¡literal¡¡meaning¡¡of¡¡the¡¡words¡¡in¡¡which¡¡it¡¡is¡¡expressed£»I¡¡now¡¡come¡¡to¡¡those¡¡which¡¡concern¡¡facts¡¡to¡¡which¡¡the¡¡contract¡¡does¡¡in¡¡some¡¡way¡¡refer¡£
Such¡¡conditions¡¡may¡¡be¡¡found¡¡in¡¡contracts¡¡where¡¡the¡¡promise¡¡is¡¡only¡¡on¡¡one¡¡side¡£¡¡It¡¡has¡¡been¡¡said¡¡that¡¡where¡¡the¡¡contract¡¡is¡¡unilateral£»¡¡and¡¡its¡¡language¡¡therefore¡¡is¡¡all¡¡that¡¡of¡¡the¡¡promisor£»¡¡clauses¡¡in¡¡his¡¡favor¡¡will¡¡be¡¡construed¡¡as¡¡conditions¡¡more¡¡readily¡¡than¡¡the¡¡same¡¡words¡¡in¡¡a¡¡bilateral¡¡contract£»¡¡indeed£»¡¡that¡¡they¡¡must¡¡be¡¡so¡¡construed£»¡¡because£»¡¡if¡¡they¡¡do¡¡not¡¡create¡¡a¡¡condition£»¡¡they¡¡do¡¡him¡¡no¡¡good£»¡¡since¡¡ex¡¡hypothesi¡¡they¡¡are¡¡not¡¡promises¡¡by¡¡the¡¡other¡¡party¡£¡¡/1/¡¡How¡¡far¡¡this¡¡ingenious¡¡suggestion¡¡has¡¡had¡¡a¡¡practical¡¡effect¡¡on¡¡doctrine¡¡may¡¡perhaps¡¡be¡¡doubted¡£
But¡¡it¡¡will¡¡be¡¡enough¡¡for¡¡the¡¡purposes¡¡of¡¡this¡¡general¡¡survey¡¡to¡¡deal¡¡with¡¡bilateral¡¡contracts£»¡¡where¡¡there¡¡are¡¡undertakings¡¡on¡¡both¡¡sides£»¡¡and¡¡where¡¡the¡¡condition¡¡implied¡¡in¡¡favor¡¡of¡¡one¡¡party¡¡is¡¡that¡¡the¡¡other¡¡shall¡¡make¡¡good¡¡what¡¡he¡¡on¡¡his¡¡part¡¡has¡¡undertaken¡£
The¡¡undertakings¡¡of¡¡a¡¡contract¡¡may¡¡be¡¡for¡¡the¡¡existence¡¡of¡¡a¡¡fact¡¡in¡¡the¡¡present¡¡or¡¡in¡¡the¡¡future¡£¡¡They¡¡can¡¡be¡¡promises¡¡only¡¡in¡¡the¡¡latter¡¡case£»¡¡but¡¡in¡¡the¡¡former£»¡¡they¡¡be¡¡equally¡¡essential¡¡terms¡¡in¡¡the¡¡bargain¡£
Here¡¡again¡¡we¡¡come¡¡on¡¡the¡¡law¡¡of¡¡representations£»¡¡but¡¡in¡¡a¡¡new¡¡phase¡£¡¡Being¡¡a¡¡part¡¡of¡¡the¡¡contract£»¡¡it¡¡is¡¡always¡¡possible¡¡that¡¡their¡¡truth¡¡should¡¡make¡¡a¡¡condition¡¡of¡¡the¡¡contract¡¡wholly¡¡irrespective¡¡of¡¡any¡¡question¡¡of¡¡fraud¡£¡¡And¡¡it¡¡often¡¡is¡¡so¡¡in¡¡fact¡£¡¡It¡¡is¡¡not£»¡¡however£»¡¡every¡¡representation¡¡embodied¡¡in¡¡the¡¡words¡¡used¡¡on¡¡one¡¡side¡¡which¡¡will¡¡£§328£§¡¡make¡¡a¡¡condition¡¡in¡¡favor¡¡of¡¡the¡¡other¡¡party¡£¡¡Suppose¡¡A¡¡agrees¡¡to¡¡sell£»¡¡and¡¡B¡¡agrees¡¡to¡¡buy£»¡¡¡¨A's¡¡seven¡year¡old¡¡sorrel¡¡horse¡¡Eclipse£»¡¡now¡¡in¡¡the¡¡possession¡¡of¡¡B¡¡on¡¡trial£»¡¨¡¡and¡¡in¡¡fact¡¡the¡¡horse¡¡is¡¡chestnut¡colored£»¡¡not¡¡sorrel¡£¡¡I¡¡do¡¡not¡¡suppose¡¡that¡¡B¡¡could¡¡refuse¡¡to¡¡pay¡¡for¡¡the¡¡horse¡¡on¡¡that¡¡ground¡£¡¡If¡¡the¡¡law¡¡were¡¡so¡¡foolish¡¡as¡¡to¡¡aim¡¡at¡¡merely¡¡formal¡¡consistency£»¡¡it¡¡might¡¡indeed¡¡be¡¡said¡¡that¡¡there¡¡was¡¡as¡¡absolute¡¡a¡¡repugnancy¡¡between¡¡the¡¡different¡¡terms¡¡of¡¡this¡¡contract¡¡as¡¡in¡¡the¡¡ease¡¡of¡¡an¡¡agreement¡¡to¡¡sell¡¡certain¡¡barrels¡¡of¡¡mackerel£»¡¡where¡¡the¡¡barrels¡¡turned¡¡out¡¡to¡¡contain¡¡salt¡£¡¡If¡¡this¡¡view¡¡were¡¡adopted£»¡¡there¡¡would¡¡not¡¡be¡¡a¡¡contract¡¡subject¡¡to¡¡a¡¡condition£»¡¡there¡¡would¡¡be¡¡no¡¡contract¡¡at¡¡all¡£¡¡But¡¡in¡¡truth¡¡there¡¡is¡¡a¡¡contract£»¡¡and¡¡there¡¡is¡¡not¡¡even¡¡a¡¡condition¡£¡¡As¡¡has¡¡been¡¡said¡¡already£»¡¡it¡¡is¡¡not¡¡every¡¡repugnancy¡¡that¡¡makes¡¡a¡¡contract¡¡void£»¡¡and¡¡it¡¡is¡¡not¡¡every¡¡failure¡¡in¡¡the¡¡terms¡¡of¡¡the¡¡counter¡¡undertaking¡¡that¡¡makes¡¡it¡¡voidable¡£¡¡Here¡¡it¡¡plainly¡¡appears¡¡that¡¡the¡¡buyer¡¡knows¡¡exactly¡¡what¡¡he¡¡is¡¡going¡¡to¡¡get£»¡¡and¡¡therefore¡¡that¡¡the¡¡mistake¡¡of¡¡color¡¡has¡¡no¡¡bearing¡¡on¡¡the¡¡bargain¡£¡¡/1/
If£»¡¡on¡¡the¡¡other¡¡hand£»¡¡a¡¡contract¡¡contained¡¡a¡¡representation¡¡which¡¡was¡¡fraudulent£»¡¡and¡¡which¡¡misled¡¡the¡¡party¡¡to¡¡whom¡¡it¡¡was¡¡made£»¡¡the¡¡contract¡¡would¡¡be¡¡voidable¡¡on¡¡the¡¡same¡¡principles¡¡as¡¡if¡¡the¡¡representation¡¡had¡¡been¡¡made¡¡beforehand¡£¡¡But¡¡words¡¡of¡¡description¡¡in¡¡a¡¡contract¡¡are¡¡very¡¡frequently¡¡held¡¡to¡¡amount¡¡to¡¡what¡¡is¡¡sometimes¡¡called¡¡a¡¡warranty£»¡¡irrespective¡¡of¡¡fraud¡£¡¡Whether¡¡they¡¡do¡¡so¡¡or¡¡not¡¡is¡¡a¡¡question¡¡to¡¡be¡¡determined¡¡by¡¡the¡¡court¡¡on¡¡grounds¡¡of¡¡common¡¡sense£»¡¡looking¡¡to¡¡the¡¡meaning¡¡of¡¡the¡¡words£»¡¡the¡¡importance¡¡in¡¡the¡¡transaction¡¡of¡¡the¡¡facts¡¡£§329£§¡¡which¡¡the¡¡words¡¡convey£»¡¡and¡¡so¡¡forth¡£¡¡But¡¡when¡¡words¡¡of¡¡description¡¡are¡¡determined¡¡to¡¡be¡¡a¡¡warranty£»¡¡the¡¡meaning¡¡of¡¡the¡¡decision¡¡is¡¡not¡¡merely¡¡that¡¡the¡¡party¡¡using¡¡them¡¡binds¡¡himself¡¡to¡¡answer¡¡for¡¡their¡¡truth£»¡¡but¡¡that¡¡their¡¡truth¡¡is¡¡a¡¡condition¡¡of¡¡the¡¡contract¡£
For¡¡instance£»¡¡in¡¡a¡¡leading¡¡case¡¡/1/¡¡the¡¡agreement¡¡was¡¡that¡¡the¡¡plaintiff's¡¡ship£»¡¡then¡¡in¡¡the¡¡port¡¡of¡¡Amsterdam£»¡¡should£»¡¡with¡¡all¡¡possible¡¡despatch£»¡¡proceed¡¡direct¡¡to¡¡Newport£»¡¡England£»¡¡and¡¡there¡¡load¡¡a¡¡cargo¡¡of¡¡coals¡¡for¡¡Hong¡¡Kong¡£¡¡At¡¡the¡¡date¡¡of¡¡the¡¡charter¡party¡¡the¡¡vessel¡¡was¡¡not¡¡in¡¡Amsterdam£»¡¡but¡¡she¡¡arrived¡¡there¡¡four¡¡days¡¡later¡£¡¡The¡¡plaintiff¡¡had¡¡notice¡¡that¡¡the¡¡defendant¡¡considered¡¡time¡¡important¡£¡¡It¡¡was¡¡held¡¡that¡¡the¡¡presence¡¡of¡¡the¡¡vessel¡¡in¡¡the¡¡port¡¡of¡¡Amsterdam¡¡at¡¡the¡¡date¡¡of¡¡the¡¡contract¡¡was¡¡a¡¡condition£»¡¡the¡¡breach¡¡of¡¡which¡¡entitled¡¡the¡¡defendant¡¡to¡¡refuse¡¡to¡¡load£»¡¡and¡¡to¡¡rescind¡¡the¡¡contract¡£¡¡If¡¡the¡¡view¡¡were¡¡adopted¡¡that¡¡a¡¡condition¡¡must¡¡be¡¡a¡¡future¡¡event£»¡¡and¡¡that¡¡a¡¡promise¡¡purporting¡¡to¡¡be¡¡conditional¡¡on¡¡a¡¡past¡¡or¡¡present¡¡event¡¡is¡¡either¡¡absolute¡¡or¡¡no¡¡promise¡¡at¡¡all£»¡¡it¡¡would¡¡follow¡¡that¡¡in¡¡this¡¡case¡¡the¡¡defendant¡¡had¡¡never¡¡made¡¡a¡¡promise¡£¡¡/2/¡¡He¡¡had¡¡only¡¡promised¡¡if¡¡circumstances¡¡existed¡¡which¡¡did¡¡not¡¡exist¡£¡¡I¡¡have¡¡already¡¡stated¡¡my¡¡objections¡¡to¡¡this¡¡way¡¡of¡¡looking¡¡at¡¡such¡¡cases£»¡¡/2/¡¡and¡¡will¡¡only¡¡add¡¡that¡¡the¡¡courts£»¡¡so¡¡far¡¡as¡¡I¡¡am¡¡aware£»¡¡do¡¡not¡¡sanction¡¡it£»¡¡and¡¡certainly¡¡did¡¡not¡¡in¡¡this¡¡instance¡£
There¡¡is¡¡another¡¡ground¡¡for¡¡holding¡¡the¡¡charter¡party¡¡void¡¡and¡¡no¡¡contract£»¡¡instead¡¡of¡¡regarding¡¡it¡¡as¡¡only¡¡voidable£»¡¡which¡¡is¡¡equally¡¡against¡¡authority£»¡¡which¡¡nevertheless¡¡I¡¡have¡¡never¡¡been¡¡able¡¡to¡¡answer¡¡wholly¡¡to¡¡my¡¡satisfaction¡£¡¡In¡¡the¡¡case¡¡put£»¡¡the¡¡representation¡¡of¡¡the¡¡lessor¡¡of¡¡the¡¡vessel¡¡£§330£§¡¡concerned¡¡the¡¡vessel¡¡itself£»¡¡and¡¡therefore¡¡entered¡¡into¡¡the¡¡description¡¡of¡¡the¡¡thing¡¡the¡¡lessee¡¡agreed¡¡to¡¡take¡£¡¡I¡¡do¡¡not¡¡quite¡¡see¡¡why¡¡there¡¡is¡¡not¡¡as¡¡fatal¡¡a¡¡repugnancy¡¡between¡¡the¡¡different¡¡terms¡¡of¡¡this¡¡contract¡¡as¡¡was¡¡found¡¡in¡¡that¡¡for¡¡the¡¡sale¡¡of¡¡the¡¡barrels¡¡of¡¡salt¡¡described¡¡as¡¡containing¡¡mackerel¡£¡¡Why¡¡is¡¡the¡¡repugnancy¡¡between¡¡the¡¡two¡¡terms£»first£»¡¡that¡¡the¡¡thing¡¡sold¡¡is¡¡the¡¡contents¡¡of¡¡these¡¡barrels£»¡¡and£»¡¡second£»¡¡that¡¡it¡¡is¡¡mackerelfatal¡¡to¡¡the¡¡existence¡¡of¡¡a¡¡contract£¿¡¡It¡¡is¡¡because¡¡each¡¡of¡¡those¡¡terms¡¡goes¡¡to¡¡the¡¡very¡¡root¡¡and¡¡essence¡¡of¡¡the¡¡contract£»¡¡/1/because¡¡to¡¡compel¡¡the¡¡buyer¡¡to¡¡take¡¡something¡¡answering¡¡to¡¡one£»¡¡but¡¡not¡¡to¡¡the¡¡other¡¡requirement£»¡¡would¡¡be¡¡holding¡¡him¡¡to¡¡do¡¡a¡¡substantially¡¡different¡¡thing¡¡from¡¡what¡¡he¡¡promised£»¡¡and¡¡because¡¡a¡¡promise¡¡to¡¡take¡¡one¡¡and¡¡the¡¡same¡¡thing¡¡answering¡¡to¡¡both¡¡requirements¡¡is¡¡therefore¡¡contradictory¡¡in¡¡a¡¡substantial¡¡matter¡£¡¡It¡¡has¡¡been¡¡seen¡¡that¡¡the¡¡law¡¡does¡¡not¡¡go¡¡on¡¡any¡¡merely¡¡logical¡¡ground£»¡¡and¡¡does¡¡not¡¡hold¡¡that¡¡every¡¡slight¡¡repugnancy¡¡will¡¡make¡¡a¡¡contract¡¡even¡¡voidable¡£¡¡But£»¡¡on¡¡the¡¡other¡¡hand£»¡¡when¡¡the¡¡repugnancy¡¡is¡¡between¡¡terms¡¡which¡¡are¡¡both¡¡essential£»¡¡it¡¡is¡¡fatal¡¡to¡¡the¡¡very¡¡existence¡¡of¡¡the¡¡contract¡£¡¡How¡¡then¡¡do¡¡we¡¡decide¡¡whether¡¡a¡¡given¡¡term¡¡is¡¡essential£¿¡¡Surely¡¡the¡¡best¡¡way¡¡of¡¡finding¡¡out¡¡is¡¡by¡¡seeing¡¡how¡¡the¡¡parties¡¡have¡¡dealt¡¡with¡¡it¡£¡¡For¡¡want¡¡of¡¡any¡¡expression¡¡on¡¡their¡¡part¡¡we¡¡may¡¡refer¡¡to¡¡the¡¡speech¡¡and¡¡dealings¡¡of¡¡every¡¡day£»¡¡/2/¡¡and¡¡say¡¡that£»¡¡if¡¡its¡¡absence¡¡would¡¡make¡¡the¡¡subject¡matter¡¡a¡¡different¡¡thing£»¡¡its¡¡presence¡¡is¡¡essential¡¡to¡¡the¡¡existence¡¡of¡¡the¡¡agreement¡£¡¡But¡¡the¡¡parties¡¡may¡¡agree¡¡that¡¡anything£»¡¡however¡¡trifling£»¡¡shall¡¡be¡¡essential£»¡¡as¡¡well¡¡£§331£§¡¡as¡¡that¡¡anything£»¡¡however¡¡important£»¡¡shall¡¡not¡¡be£»¡¡and¡¡if¡¡that¡¡essential¡¡is¡¡part¡¡of¡¡the¡¡contract¡¡