2020 Georgia Code
Title 51 - Torts
Chapter 6 - Fraud and Deceit
§ 51-6-3. Letters to Obtain Credit

No action shall be sustained for deceit in a representation to obtain credit for another unless the misrepresentation is in writing and is signed by the party to be charged therewith.

(Orig. Code 1863, § 2902; Code 1868, § 2908; Code 1873, § 2959; Code 1882, § 2959; Civil Code 1895, § 3815; Civil Code 1910, § 4411; Code 1933, § 105-303; Ga. L. 1992, p. 6, § 51.)

- Letters of credit generally, T. 11, Art. 5.

This section is an affirmative defense under Georgia law that must be set forth in a responsive pleading or be waived. Funding Sys. Leasing Corp. v. Pugh, 530 F.2d 91 (5th Cir. 1976).

Defendant need not derive any benefit from the fraud. Young v. Hall, 4 Ga. 95 (1848); Callaway v. Wynne, 27 Ga. App. 723, 109 S.E. 679 (1921).

Expression of opinion of the credit of another is not actionable. Wrenn & Sons v. Truitt, 116 Ga. 708, 43 S.E. 52 (1902).

This section does not apply to action against stock brokers who induced party to buy worthless stock in a corporation, by falsely stating the commercial standing of some of the directors who have personally guaranteed to repurchase the stock at the option of the plaintiff. Howard v. Allgood, 143 Ga. 550, 85 S.E. 757 (1915).

Cited in Smith v. Jewett, 10 Ga. App. 294, 73 S.E. 549 (1912); Gellis v. B.L.I. Constr. Co., 148 Ga. App. 527, 251 S.E.2d 800 (1978); Mr. Transmission, Inc. v. Thompson, 173 Ga. App. 773, 328 S.E.2d 397 (1985); Gorlin v. Halpern, 184 Ga. App. 10, 360 S.E.2d 729 (1987).

RESEARCH REFERENCES

Am. Jur. 2d.

- 37 Am. Jur. 2d, Fraud and Deceit, §§ 125 et seq., 184 et seq.

- 37 C.J.S., Fraud, § 80 et seq.

- May offense of obtaining money or property by false pretenses or confidence game be predicated on obtaining loan or renewal thereof, 24 A.L.R. 397; 52 A.L.R. 1167.

Liability of persons undertaking to supply credit or other commercial information for negligence or fraud of themselves or their agents, 102 A.L.R. 1070.

Misrepresentations as to financial condition or credit of third person as actionable by one extending credit in reliance thereon, 32 A.L.R.2d 184.

Construction of statute requiring representations as to credit, etc., of another to be in writing, 32 A.L.R.2d 743.

False statement as to existing encumbrance on chattel in obtaining loan or credit as criminal false pretense, 53 A.L.R.2d 1215.

Measure of damages recoverable for fraud as to the credit or financial condition of a third person, 72 A.L.R.2d 943.

Liability of bank, to other than party whose financial condition is misrepresented, for erroneous credit information furnished by bank or its directors, officers, or employees, 77 A.L.R.3d 6.