Fraudulent Misrepresentation: Elements That Make Up a Claim
Fraudulent misrepresentation is intentionally making a false statement that persuades or influences another person to enter into a transaction. As St. Petersburg construction attorneys, we have experience handling disputes that arise after such false statements. To prove your case in court, a particular set of elements must be present. For the sake of the article, we’ll discuss the elements that make up fraudulent misrepresentation and give a few examples.
Examples of Fraudulent Misrepresentation
Deceit in the construction industry can occur in different ways. Some examples of fraud in the construction industry are:
- A contractor failing to perform according to his contractual duty as was the case of Dunn Construction Company, Inc., v. Cloney, 278 Va. 260 (2009).
- Other examples include submitting false bids, misrepresentation work, and misrepresenting the payment of contractors.
If you feel you’ve been a victim of deceit, a St. Petersburg construction lawyer can help you in the claims process.
The first element involves making false statements in relation to the transaction or contract in question. This is called “material to the transaction”.
The second element examines whether a statement was made with reckless disregard. The question that needs to be answered is whether a false statement was made deliberately. This would be an intentional tort, meaning, a deliberate lie was told by the defendant to the plaintiff.
This third element involves inducement. Can you prove the statement made to you was false and it persuaded you to enter a transaction? Following are types of inducement:
- Fraud in the Inducement is tricking someone into doing something that would unknowingly to them, cause harm or damage.
- Fraud in the factum causes someone to enter into a transaction unaware of the danger or duty they’d be subject to.
This element involves determining reliance. If the plaintiff depended on the claims of the defendant to make an informed decision, the element of reliance can be used to help prove a case.
This final element occurs as a result of the defendant’s deceit. If the plaintiff suffers damages because of the defendant’s trickery.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.