A contract may be rescinded at the instance of the party defrauded; but, in order to rescind, the defrauded party must promptly, upon discovery of the fraud, restore or offer to restore to the other party whatever he has received by virtue of the contract if it is of any value.
History. Civil Code 1895, § 3711; Civil Code 1910, § 4305; Code 1933, § 20-906.
History of Code section.
This Code section is derived from the decision in East Tenn. & Ga. Ry. v. Hayes, 83 Ga. 558 , 10 S.E. 350 (1889).
Cross references.
Fraud generally, § 23-2-50 et seq.
Law reviews.
For comment discussing action of fraud where injured purchaser did not first seek rescission of contract, in light of Mutual Home & Sav. Ass’n v. Westgerdes, 33 Abs. 490, 35 N.E.2d 882 (1941), see 4 Ga. B.J. 69 (1941).
For article discussing the historical background of the doctrine of tender and the application in Georgia of tender requirements, and proposing reforms, see 21 Mercer L. Rev. 413 (1969).
For article discussing ex parte rescission of sales contract for fraud and suit for fraud and deceit, in light of City Dodge, Inc. v. Gardner, 232 Ga. 766 , 208 S.E.2d 794 (1974), see 11 Ga. St. B.J. 172 (1975).
For note discussing rescission for fraud as a consumer remedy, see 25 Emory L.J. 445 (1976).
For note, “Misrepresentations and Nondisclosures in the Insurance Application,” see 13 Ga. L. Rev. 876 (1979).