49 Ga. App. 546 | Ga. Ct. App. | 1934
A stay of a suit against a bankrupt will be ordered where the suit is founded upon a claim from which a discharge would be a release. Bankruptcy Act, § 11. “A discharge in bankruptcy shall release a bankrupt from all of his provable debts, except [among other debts specified] such as were created by his fraud.” Bankruptcy Act, § 17. “Where a contract is induced by the actual, moral fraud of one of the parties, his liability for property obtained under the contract may be enforced according to the terms of the contract, or the defrauded party may waive the contract and sue in tort for the damages sustained on account of the fraud. In the first event, the liability of the debtor under the terms of the contract itself is a contractual liability, and a discharge in bankruptcy releases him therefrom. Ford v. Blackshear Mfg.
Judgment affirmed.