VI. Fraud

Question 1

Elements of Fraud

Answer 1

1. Falsity
2. Knowledge of Falsity
3. Inducement
4. Justifiable Reliance
5. Damages

Question 2

Affirmative Misreperesnationt

Answer 2

• Silence generally will not suffice–must make affirmative efforts to missrepresent
  
  • Exception for sale of resdiential real estate when seller knows of some defect at some time before sale (termites)

Question 3

Fault

Answer 3

• Must show fault or intent to creat fraud. Fraud is an intentional action
  
  • if you say something wrong but in good faith, it is okay

Question 4

Intent to Induce Reliance

Answer 4

• Statement must be material to the transaction

Question 5

Justifiable Reliance

Answer 5

• It is normally justifiable to rely on the opinino of one who has superior skill or knowledge in the subject matter of the transaction
• GA: absent a confidential relationshp, plaintiff generally has a duty to investigate defnedant’s statement to extends reasonalby possible
  
  • includes a duty to read the document

Question 6

Comparison with Negligent Misrepresentation

Answer 6

Negligent mis rep–commercial transactions confiend to a plaintiff whose reliance is contemplated