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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¡£

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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¡£

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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¡¡description¡¡of¡¡a¡¡specific¡¡thing¡¡which¡¡is¡¡also¡¡identified¡¡by¡¡reference¡¡to¡¡the¡¡senses£»¡¡how¡¡can¡¡there¡¡be¡¡a¡¡contract¡¡in¡¡its¡¡absence¡¡any¡¡more¡¡than¡¡if¡¡the¡¡thing¡¡is¡¡in¡¡popular¡¡speech¡¡different¡¡in¡¡kind¡¡from¡¡its¡¡description£¿¡¡The¡¡qualities¡¡that¡¡make¡¡sameness¡¡or¡¡difference¡¡of¡¡kind¡¡for¡¡the¡¡purposes¡¡of¡¡a¡¡contract¡¡are¡¡not¡¡determined¡¡by¡¡Agassiz¡¡or¡¡Darwin£»¡¡or¡¡by¡¡the¡¡public¡¡at¡¡large£»¡¡but¡¡by¡¡the¡¡will¡¡of¡¡the¡¡parties£»¡¡which¡¡decides¡¡that¡¡for¡¡their¡¡purposes¡¡the¡¡characteristics¡¡insisted¡¡on¡¡are¡¡such¡¡and¡¡such¡£¡¡/1/1¡¡Now£»¡¡if¡¡this¡¡be¡¡true£»¡¡what¡¡evidence¡¡can¡¡there¡¡be¡¡that¡¡a¡¡certain¡¡requirement¡¡is¡¡essential£»¡¡that¡¡without¡¡it¡¡the¡¡subject¡­matter¡¡will¡¡be¡¡different¡¡in¡¡kind¡¡from¡¡the¡¡description£»¡¡better¡¡than¡¡that¡¡one¡¡party¡¡has¡¡required¡¡and¡¡the¡¡other¡¡given¡¡a¡¡warranty¡¡of¡¡its¡¡presence£¿¡¡Yet¡¡the¡¡contract¡¡description¡¡of¡¡the¡¡specific¡¡vessel¡¡as¡¡now¡¡in¡¡the¡¡port¡¡of¡¡Amsterdam£»¡¡although¡¡held¡¡to¡¡be¡¡an¡¡implied¡¡warranty£»¡¡does¡¡not¡¡seem¡¡to¡¡have¡¡been¡¡regarded¡¡as¡¡making¡¡the¡¡contract¡¡repugnant¡¡and¡¡void£»¡¡but¡¡only¡¡as¡¡giving¡¡the¡¡defendant¡¡the¡¡option¡¡of¡¡avoiding¡¡it¡£¡¡/2

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