Chapter V.: Wrongs against Good Faith.

[It is proper to mention that these clauses and the notes to them were written before Derry v. Peek (p. 264 above) had come before either the Court of Appeal or the House of Lords.]

Deceit.39. A person wrongs another who deceives that other within the meaning of this Act.

Deceit defined.40. (1) Where one person makes a statement to another which—

there the person making the statement is said to deceive the person to whom it is made.

(2) For the purposes of this section, a statement may be made in any of the ways mentioned in s. 32 of this Act, and may be made either to a certain person or to all or any of a number of persons to whom it is collectively addressed.

Explanation.—(1) A statement intended by the person making it to be communicated to and acted upon by a person is deemed to have been made to that person.

(2) Where a person acts in reliance on the statement of another, it is immaterial that he had the means of examining the truth of that statement.

(3) A statement may be untrue, though no part of it is in terms untrue, if by reason of material facts being omitted the statement as a whole is fitted to deceive.