763. Effect of negligence or incompetence in forming belief.

A misrepresentation which is founded on a belief in its truth, if that belief really existed, and was genuinely and honestly entertained, is not deprived of its character of innocence by reason of the mere fact that the belief resulted from want of care, skill or competence, or lapse of memory1, even though such conduct, in other aspects, may have been of a most culpable character2. Negligence is not dishonesty3. It has been said that although negligence does not amount to fraud, it may constitute evidence of it4; and there may be cases in which the want of care