17. Misrepresentations

Question 1

What is required for intentional misrepresentation/fraud/deceit?

Answer 1

1) Misrepresentation
- Material past/present fact
- Opinion (D has superior knowledge, P has NO superior knowledge)
- Failed duty to disclose (fiduciary relationship/real property sale + D knew P could not reasonably discover material info/deceived by utterance)

2) Scienter
- D knew/recklessly disregarded falsity of statement
- OTHERWISE negligent misrep

3) Intent to induce P to act/refrain from acting

4) Causation (Actual reliance)
- By Plaintiff
- By TP (D could reasonably foresee TP’s reliance)

5) ‘Justifiable’ reliance

6) Damages
- Pecuniary loss

Question 2

What is required for negligent misrepresentation?

Answer 2

1) Misrepresentation
- Business/Professional capacity (NOT general)

2) Breach of duty
- Particular P
- NOT TP (unlike intentional misrep)

3) Causation (Actual reliance)
4) ‘Justifiable’ reliance

5) Damages
- Pecuniary loss

Question 3

Are defences applicable to misrepresentation?

Answer 3

No