Fraud

Question 1

Affirmative Misrepresentation

Answer 1

Silence generally WILL NOT suffice

Question 2

Fault

Answer 2

Scienter MUST be shown. Fraud is an INTENTIONAL cause of action.

Question 3

Intention to Induce Reliance

Answer 3

Statement MUST be MATERIAL

Question 4

Actual & Justifiable Reliance

Answer 4

Normally justifiable to rely on the OPINION of 1 who has SUPERIOR SKILL OR KNOWLEDGE in the subject matter of the transaction.

Question 5

Damages

Answer 5

Fraud is a “no harm, no foul” cause of action (Actual $$ loss is necessary)

Question 6

Comparison w/Negligent Misrepresentation

Answer 6

Liability normally confined to COMMERCIAL transactions

Liability normally confined to PARTICULAR π whose reliance is contemplated