Misrepresentation

Question 1

Material Facts (reasonable standard)

Answer 1

Matters to which a reasonable person would attach importance to in making a decision related to a transaction.

Question 2

Fraudulent Misrepresentation

Clear and convincing evidence standard

Answer 2

Plaintiff Must Prove by Clear and Convincing Evidence:

1) D’s made REPRESENTATIONS
2) Representations were FALSE
3) False Representations were MATERIAL
4) KNOWLEGE that the representations were FALSE
5) INTENT TO DECIEVE
6) Plaintiff RELIED upon False representations
7) Plaintiff was INJURED by Representations.

Question 3

Fraud in Execution

Answer 3

• Party is deceived as to the nature of the writing.

Question 4

Fraud in the INDUCEMENT

Answer 4

• Party Knows what he is signing, but does so as a result of the misrepresentation.

Question 5

Rescission of a Contract

Misrepresentation

Answer 5

A party may rescind a contract for a material misrepresentation even if the misrepresentation was not made with Fraudulent INTENT.

Question 6

Non Disclosure (duty to disclose)

Answer 6

Duty of Seller to Disclose known material facts when:

• Facts Known or accessible to seller
• Not Readily Available to Buyer
• Confidential Relationship = Nondisclosure of material fact is equivalent to Fraud.

Question 7

DUTY TO DISCLOSE

Answer 7

Seller Must Disclose Known Fact when:

1) Fradulent (Active Concealment)
2) Negligent, and
- Facts are known or accessible to the seller
- Facts are Material
- Not Readily Available to the Buyer