Ballard v. Carroll – Case Brief Summary (Arkansas)

In Ballard v. Carroll, 2 Ark. App. 283, 621 S.W.2d 484 (1981), the Court, citing English v. North, 112 Ark. 489, 166 S.W. 577 (1914), set forth the following four tests to determine whether rescission of a contract upon the ground of fraudulent representations could be maintained:

(a) Was the fraud material to the contract; did it relate to some matter of inducement to the making of the contract?

(b) Did it work an injury?

(c) Was the relative position of the parties such, and their means of information such, that the one must necessarily be presumed to contract upon the faith reposed in the statements of the other?

(d) Did the injured party rely upon the fraudulent statements of the other, and did he have a right to rely upon them?