First Title Co. of Waco v. Garrett

If someone says, “there is no restrictive covenant on your property,” when actually there is, the statement is a misrepresentation. It asserts as fact what is demonstrably false. But if someone says, “I will pay you damages if there is a restrictive covenant on your property,” that statement is not a representation that no such covenant exists; rather, it is a promise that if a covenant does exist, any resulting harm will be paid for. And if the promise is kept, the statement was not false but true. The Court does not appear to grasp the distinction between these two statements. It treats the…