Misrepresentation

Question 1

Intentional Misrepresentation

Answer 1

In order to recover for intentional misrepresentation, or
deceit, the plaintiff must prove that the defendant made a false statement of material
fact with scienter and with an intent to induce the plaintiff’s reliance, and that the plaintiff
justifiably relied, causing the plaintiff damage.

Question 2

Negligent Misrepresentation

Answer 2

In order to recover for negligent misrepresentation, the
plaintiff must prove that the defendant breached his duty to exercise due care in
acquiring and transmitting information, and made a false statement of material fact, with
an intent to induce the plaintiff’s reliance, and that the plaintiff justifiably relied, causing
the plaintiff damage.

Question 3

Out of Pocket Damages (Misrepresentation)

Answer 3

Out of Pocket damages are usually
considered to be the same thing as special damages since they are pecuniary in nature.
However, in an action for misrepresentation, out-of-pocket damages are calculated by
comparing the difference between what the plaintiff paid, to the value of what the
plaintiff received.

Question 4

Loss of the Benefit of the Bargain Theory (Misrepresentation)

Answer 4

Under the Loss of
the Benefit of the Bargain Theory, special damages for misrepresentation are calculated
by considering the value received by the plaintiff as compared to the value that the
defendant stated the plaintiff would receive.