Also known as:deceits · deception · deceptions · fraud · misrepresentation
Written by attorneys · grounded in primary & secondary sources — see below
A tort arising from a false representation of fact made knowingly or recklessly with intent that another person detrimentally rely on it. The elements are a misrepresentation, scienter, intent to induce reliance, justifiable reliance, and resulting damages.
Sources & Authorities
How it applies
Common Examples
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Fraudulent Entry into Dwelling
Darius Dixon told the homeowner he was a licensed plumber responding to a leak complaint. The homeowner allowed entry. Once inside, Darius stole valuables. The consent was ineffective because it was procured by deceit, satisfying the breaking element for burglary.
Seller Conceals Structural Defects
Darrell Duncan sold a house to Devon Drake and accepted the deed at closing. After closing, Devon discovered that Darrell had concealed major foundation cracks. Because the concealment amounted to deceit, the merger doctrine did not bar Devon's post-closing claim.
Pleading Deceit with Specificity
Dominic Drake sued Dawson Steel for deceit after the company misrepresented the safety of its equipment. The complaint detailed the exact false statements, dates, and speakers. The particularity requirement for alleging deceit was satisfied.
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Client Seeks Lawyer Assistance for Fraud
Derek Douglas asked his lawyer to help transfer assets to hide them from creditors. The lawyer realized the plan involved deceit. The lawyer was required to withdraw because the client persisted in using the lawyer's services to further deceit.
Undercapitalized Shell Used for Deceit
Dwight Dorsey formed Dover Bank as an undercapitalized shell and commingled its funds with his own. He used the entity to deceive creditors into extending credit. A court pierced the veil because the corporate form was employed to perpetrate deceit.
Contestant Proves Will Procured by Deceit
Delta Dynamics offered a will for probate. The decedent's heirs showed that the proponent had knowingly made false statements to the testator about asset values to induce execution of the will. The heirs met their burden of establishing deceit as grounds to deny probate.
Common questions
Frequently Asked
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What are the elements of the tort of deceit?+
The elements are a false representation of fact, scienter consisting of knowledge or recklessness, intent to induce reliance, justifiable reliance by the plaintiff, and resulting damages.
Does deceit require proof that the defendant knew the statement was false?+
Yes. Scienter is satisfied by actual knowledge of falsity or reckless indifference to the truth. Innocent or negligent misstatement is insufficient for deceit.
Can a plaintiff recover for deceit when the misrepresentation concerned a future promise?+
No. At common law a false promise about future conduct does not constitute deceit unless it is accompanied by a present intent not to perform.
Is reliance justified when the plaintiff could have discovered the truth by inspection?+
Reliance is not justified if the falsity is obvious to the plaintiff or the plaintiff knows the statement is false.
376 U.S. 254 (1964)Remedies
…deserve to be considered, ignorant or incompetent, that it is rarely possible, on adequate grounds, conscientiously to stamp the misrepresentation as morally culpable; and still less could law presume to interfere with this kind of controversial misconduct." [^maj-15]: The climate in which public officials operate, especially during…