Fraud and Misrepresentation

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:

  1. a representation was made
  2. the representation was false
  3. that when made, the defendant knew that the representation was false or that the defendant made the statement
  4. recklessly without knowledge of its truth
  5. that the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
  6. that the plaintiff did rely on the fraudulent misrepresentation
  7. that the plaintiff suffered harm as a result of the fraudulent misrepresentation