Under contract law, a plaintiff can recover compensatory damages against a defendant when a court finds that the defendant has committed fraudulent misrepresentation. Courts will typically find that a defendant has committed fraudulent misrepresentation when six factors have been met:
- a representation was made
- the representation was false
- that when made, the defendant knew that the representation was false or that the defendant made the statement
- recklessly without knowledge of its truth
- that the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
- that the plaintiff did rely on the fraudulent misrepresentation
- that the plaintiff suffered harm as a result of the fraudulent misrepresentation