What is intentional misrepresentation and what are the elements required to prove fraud?
What will be an ideal response?
A misrepresentation occurs when an assertion is made that is not in accord with the facts. An intentional misrepresentation occurs when one person consciously decides to induce another person to rely and act on a misrepresentation. Intentional misrepresentation is commonly referred to as fraudulent misrepresentation, or fraud. When fraudulent misrepresentation is used to induce another to enter into a contract, the innocent party's assent to the contract is not genuine, and the contract is voidable by the innocent party. The innocent party can either rescind the contract and obtain restitution or enforce the contract and sue for contract damages.
To prove fraud, the following elements must be shown:
1. The wrongdoer made a false representation of material fact.
2. The wrongdoer intended to deceive the innocent party.
3. The innocent party justifiably relied on the misrepresentation.
4. The innocent party was injured.
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A) customer; competitor B) competitor; customer C) market; customer D) market; competitor E) competitor; product
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a. True b. False
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Fact Pattern 12-2ACut-Rate Construction Company (CCC) begins building a restaurant for Diners Restaurants, Inc., but after two months demands an extra $100,000. Diners agrees to pay.Refer to Fact Pattern 12-2A. If CCC offers no reason for the extra $100,000, but says only that it will otherwise stop construction, the agreement is
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