Appleton vs. Bacon & North was a case heard by the United States Supreme Court in 1862. The dispute arose when Appleton, who had purchased land from Bacon and North, sued them for fraudulently misrepresenting the quality of the land he bought. At issue was whether or not Appleton could recover damages from Bacon and North based on their alleged fraudulent representations about the property's value. The court held that while there were no express warranties made by either party at the time of sale, it found that an implied warranty existed between them due to their relationship as seller and buyer which allowed Appleton to recover damages for any false statements made regarding his purchase. This decision established precedent allowing buyers to seek compensation if they can prove that sellers have knowingly misled them about a product’s worth or quality prior to making a purchase agreement.

In the case of Appleton vs. Bacon & North, Justice Nelson delivered a dissenting opinion in which he argued that the majority's decision was wrongfully based on an interpretation of contract law rather than equity. He asserted that while it may be true that contracts are to be enforced according to their terms, this should not apply when there is evidence of fraud or mistake in the formation of such contracts. In this particular case, Justice Nelson believed there was sufficient evidence to suggest fraudulent behavior by Bacon & North and thus they should not have been allowed to benefit from their own wrongdoing at Appleton’s expense. Furthermore, he argued that since both parties were equally ignorant as to certain facts related to the contract dispute, neither party could claim any advantage over one another and therefore no damages should have been awarded either way.