Economic Torts

Question 1

Misrepresentation

Answer 1

Intentional Misrepresentation (fraud, deceit)

• elements:

1. ​Affirmative misrepresentation of a material fact
2. Knowledge or belief that the misrepresentation is false
3. Intent to induce P to act or refrain from acting in reliance on the misrepresentation
4. Actual reliance (causation)

• P must actualy rely on the misrepresentation
  
  5. Justifiable reliance
• P must be justified in relying on the misrepresentation
  
  6. Damages - P must suffer monetary loss

Negligent Misrepresentation

• Elements:

1. ​Misrepresentation by D concerning a past or existing material fact
2. That breaches a duty of care owed to a particular P
3. D has no reasonable grounds to believe the statement is true
4. Actual and justifiable reliance by P
5. Damages - P must suffer monetary loss

Question 2

Intentional Interferences with Business relations

Answer 2

Arises when a third party interferes with an exsiting contract

Elements:

1. P has a valid contractual relationship or business expectancy
   
   • includes contracts between P and a third party
2. D has knowledge of the relationship or expectancy
3. D intentionally interferes with thtat relationship
4. D’s interference causes a breach or termination in P’s contract or expectancy
5. Damages

Privilige defenses

• D’s conduct may be privilege when it is a proper attempt to obtain business or protect his interests
• D can interfere with P’s prospective business advantage