fraud is deliberate deception to secure unfair or unlawful gain, or to deprive
a victim of a legal right. Fraud can be a civil wrong. There are total 9
elements of fraud.
first element is the representation of a fact. The meaning is anything short of
a warranty, which proceeds from the action of the party charged which is
sufficient to create upon the mind a distinct impression of fact conducive to action.
a plaintiff report that a office “made fraudulent representations in
advertisements and publicity,” a court
will hold the complaint to be not sufficiency
and dismiss the claim because it
did not “state, which, if any, of the plaintiffs heard these representations
and relied on them.
representation can include a party’s failure to disclose certain facts. In
general rule, speculation of hope for the future doesn’t constitute reasonable
representations of fact.
second common law fraud element is the fakeness of the representation.it is the
most important to an action in fraud. A presenter’s “state of mind or intent”
can reveal the falsity of the representation
third common law fraud element is the materiality of the representation. A
representation of a fact is material if it operates as an attraction to the
other party to enter into the contract. Let’s say, the false statement does
not have to actually contribute to a loss within the parties.
next common law fraud element needs the represented to either have knowledge of
the representation’s fakeness or else be careless in his ignorance of its
truth. The fifth common law fraud element is the presenter’s intention to
induce the other party to act in order with the representation
element of fraud don’t require a straight relationship between the alleged
fraudfeasor and a specific known person; it is enough if the fraudfeasor got
“reason to expect” the person to act or to refrain from action in reliance upon
the misrepresentation, “in the type of transaction in which he intends or has
reason to expect the person’s conduct to be affect.
6th fraud element is the injured party’s ignorance of the representation’s fakeness.
If a plaintiff knows a representation is false, a cause of action for common
law fraud will not exist
say the plaintiff only knows the falsity of some of the elements of a
representation, which that knowledge will not prevent a searching of fraud
based on the concealment of other elements.
if, under the circumstances, the injured person should have reasonably researched
more into the representation, a court will not consider the person to be
seventh common law fraud element is the injured party’s actual dependencies on
the truth of the representation.
injured party’s actual reliance on a representation is normally the hardest part
of common law fraud to prove. To be honest, many states have rejected the
“fraud on the market” doctrine which made it not necessary for buyers or
sellers of stock to prove they relied on a defendant’s misrepresentations.
eighth common law fraud element is the injured party’s right to rely on the
representation. A person must not haves a right to rely on a representation if he
is known the representation is fake..
ninth and final common law fraud element is evidence of the injured party’s
consequent and acctual injury.
the fraud text,,to be actionable the alleged misrepresentation must not only
have induced the recipient’s reliance, but must also have caused the
example, a plaintiff is not harmed if she is “in exactly the same situation”
before and after the representation..
a plaintiff take a common law fraud claim should plead with specificity and
particularity that the opposite party intentionally or recklessly represented a
material and false with the intent to create the plaintiff to act in accordance
with the representation and that the plaintiff ignorantly and reasonably relied
upon the representation to her injury.