Economic/commercial Torts

Question 1

What are the 5 elements ofthe tort of fraud?

Answer 1

1) the ∆ must make an affirmative misrepresentation of a material fact (silence and opinions is generally NOT enough) 2) ∆ intentionallyOR recklessly made thefalsestmt 3) ∆ must intend to induce π’s reliance 4) there has to be justifiable and actual reliance by π 5) there has to be actual pecuniary damages (e.g. economic loss)

NOTE: there are NO affirmative defenses to fraud

Question 2

What are the elements for inducing a breach of contract?

Answer 2

1) existence of a valid K relationship b/t 2 individuals 2) there is knowledge of the K by a 3d party 3) intentional interference by the ∆ who persuades X to abandon the contract 4) there is a subsequent breach
* inducement is not actionable if there is a privilege. privileges exist if there is a special relationship btwn ∆ and X (i.e clergy, law, family member)

Question 3

What are the elements for theft of trade secrets?

Answer 3

i) the EXISTENCE OF a valid trade secret 2) taking by an IMPROPER MEANS
* valid trade secret = i)information that provides a business advantage to its owner ii) the information is not generally known and iii) you must take reasonable means to preserve secrecy