Fraud as a basis for Rescission

Question 1

Elements of Fraud

Answer 1

1. misrepresentation of a material fact
2. party making representation has to know that the rep was false OR acted with reckless disregard to its truth or falsity
3. P reasonably relied upon representation
   P suffered injury as a result

Question 2

Fraud in the Inducement

Answer 2

misrepresentation of material fact to induce someone to enter K

Question 3

Fraud in the execution

Answer 3

alteration o document

Question 4

Fraud as an exception

Answer 4

Fraud is an exception to the general rule that a party is held to their signature. Defrauded party not held to the agreement.

Question 5

3 types of misrepresentation

Answer 5

Affirmative false statement - verbal lie
Concealment: deliberately hiding truth
Non-disclosure: remaining silent