4. Economic Torts

Question 1

Elements of Fraud

Answer 1

1. The D makes a misrepresentation of fact
2. The misrepresentation of fact must have been either deliberate or reckless
3. It must be D’s goal to endure reliance
4. The P must actually rely on the information
5. Damage

Question 2

Is silence enough to satisfy the “misrepresentation of fact” element of Fraud?

Answer 2

No

Question 3

Is it justifiable to rely on an opinion to satisfy the “reliance” element of Fraud?

Answer 3

It is justifiable to rely on an opinion if the person giving the option has superior skill or information

Question 4

What are the affirmative defenses for Fraud?

Answer 4

None

Question 5

What are the elements of Malicious Prosecution?

Answer 5

1. D previously commenced a civil lawsuit or instigated a criminal proceeding against the P,
2. that case was terminated in favor of P, and
3. there was no probable cause, and the entire motive for bringing the case was an improper motive.

Question 6

Elements of Inducing a Breach of Contract

Answer 6

1. There has to be a valid K not terminable at will between the P and a third party
2. The D knows of the K
3. The D then successfully persuades the third party to abandon the deal

Question 7

Under what circumstances will a D not be liable for Inducing a Breach of Contract, even if his actions satisfy the elements?

Answer 7

When there is a special relationship between D and the third party. (Ex: an accountant, a father, minister, priest, etc.)