two-innocent-persons principle

two-innocent-persons principle
The principle of equity that when one of two innocent persons that is, persons each guiltless of an intentional moral wrong-must suffer a loss, it must be borne by that one of them who, by his conduct, has rendered the injury possible, or who could have prevented it. 28 Am J2d Estop § 62. The maxim that as between one of two innocent persons who must suffer from the fraud of a third, he who furnishes the means to commit the fraud, or whose negligence enables the third person to commit it, must bear the loss. 37 Am J2d Fraud § 306.

Ballentine's law dictionary. . 1998.

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