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Understanding the Elements of Fraud: A Legal Perspective, Lecture notes of Acting

The key elements required to prove a case of fraud in a court of law. It covers the role of the plaintiff and defendant, the importance of false representations, intent to deceive, justifiable reliance, and resulting damages. The document also discusses the burden of proof and the significance of opinions versus facts.

What you will learn

  • How does justifiable reliance impact a fraud case?
  • What are the key elements required to prove a case of fraud?
  • What is the role of intent to deceive in a fraud case?

Typology: Lecture notes

2021/2022

Uploaded on 09/27/2022

linden
linden 🇬🇧

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CHARGE 3.30E — Page 1 of 3
3.30E FRAUD — DECEIT (Approved 2/92)
Plaintiff seeks to recover damages which he/she claims he/she sustained as a
result of a misrepresentation made to him/her by the defendant. One who
represents as true that which is false with the intent to deceive the person to whom
the representation is made is liable to that person if he/she, believing the
representation to be true (acts, refrains from acting) in justifiable reliance upon it
and suffers damage as a result.
The burden of proof is on the plaintiff to establish by clear and convincing
evidence each of the following elements. First, that defendant made a false
representation of fact to him/her. Second, that defendant knew or believed it to be
false. Third, that defendant intended to deceive plaintiff. Fourth, that plaintiff
believed and justifiably relied upon the statement and was induced by it to (action
taken or omitted). Fifth, that as a result of plaintiff's reliance upon the statement,
he/she sustained damage.
The first question for you to determine is what defendant said to the
plaintiff. If it was a statement of opinion rather than a statement of fact, defendant
cannot be held responsible, for opinions are matters of judgment for which under
the circumstances of this case, the law does not impose liability and your verdict
will be for the defendant. If on the other hand you find that defendant stated in
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3.30E FRAUD — DECEIT (Approved 2/92)

Plaintiff seeks to recover damages which he/she claims he/she sustained as a result of a misrepresentation made to him/her by the defendant. One who represents as true that which is false with the intent to deceive the person to whom the representation is made is liable to that person if he/she, believing the representation to be true (acts, refrains from acting) in justifiable reliance upon it and suffers damage as a result.

The burden of proof is on the plaintiff to establish by clear and convincing evidence each of the following elements. First, that defendant made a false representation of fact to him/her. Second, that defendant knew or believed it to be false. Third, that defendant intended to deceive plaintiff. Fourth, that plaintiff believed and justifiably relied upon the statement and was induced by it to (action taken or omitted). Fifth, that as a result of plaintiff's reliance upon the statement, he/she sustained damage.

The first question for you to determine is what defendant said to the plaintiff. If it was a statement of opinion rather than a statement of fact, defendant cannot be held responsible, for opinions are matters of judgment for which under the circumstances of this case, the law does not impose liability and your verdict will be for the defendant. If on the other hand you find that defendant stated in

words or substance that (recite the representations claimed) your finding will be that defendant made a representation of fact.

If you find that defendant made a representation of fact, you will next consider whether that representation was true or false. If you find it was true, your verdict will be for the defendant. If you find it was false, you will then determine whether defendant knew or believed it was false and made the representation with intent to deceive the plaintiff. A false statement is made with intent to deceive if it is made with knowledge that it is false.

Whether the plaintiff was justified in relying on the representation depends upon whether the fact represented is one that a reasonable man would consider important in reaching a decision in the transaction in question. Even though it is not such an important fact, reliance may be justified if the defendant in making the representation knew that the plaintiff considered it important and would rely upon it.

If you ultimately conclude that there was no justifiable reliance by the plaintiff or even if there was not a substantial factor in plaintiff's decision to enter into the transaction, your verdict will be for the defendant.