Legal protection in contracts induced by fraud is subject to the important qualification that continued performance after discovery of the fraud may result in a "waiver" of the damage remedy for deceit. This doctrine, well established in modern law, is not based on any supposed inconsistency between continued performance and damages for deceit. Both continued performance and the deceit remedy are predicated upon the theory of affirmance of the contract, and no election between them is required. Nor is the doctrine of "waiver" of damages in deceit to be confused with the totally different rule that continued acceptance of the benefits of a fraud-induced contract, or even mere delay, may result in an "affirmance" of the contract and a forfeiture of the rescission remedy.
CONTRACTS - FRAUD - WAIVER OF DECEIT ACTION BY CONTINUED PERFORMANCE,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol34/iss3/5