Also known as: fraud · frauds · deceit · deceits · misrepresentation · fraudulent misrepresentation
Written by attorneys · grounded in primary & secondary sources — see below
An intentional misrepresentation of a material fact made with knowledge of its falsity and intent to induce reliance, upon which the victim justifiably relies to their detriment.
Fiona Foster tells the homeowner she is a utility inspector needing to check the basement. The homeowner consents and unlocks the door. Fiona then uses the entry to steal valuables inside. The consent obtained by the false identity claim constitutes a constructive breaking that satisfies the burglary element.
Frederick Ferguson buys a building from Frostline Textiles after the seller orally promises to repair the roof. At closing Frederick accepts the deed containing no repair clause. After discovering the seller knew the roof was defective and concealed it, Frederick may still sue for fraud despite merger of the contract into the deed.
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Forrest Falconer files a complaint alleging Flagship Logistics misrepresented cargo capacity to induce a shipping contract. The complaint states only that the statements were false and caused loss. The court dismisses because the circumstances of the fraud, including who made the statements and when, were not pleaded with particularity.
Finn Fletcher's client asks him to structure a real-estate transfer that will conceal assets from creditors. After Finn explains he cannot assist with fraud, the client insists on proceeding. Finn must withdraw from the representation under the mandatory withdrawal rule.
Freya Freeman orally agrees to rent a warehouse from Fulton Shipping for eleven months at a fixed monthly rent. Because the term does not exceed the period specified in the controlling statute of frauds, the landlord-tenant relationship is valid despite the absence of a signed writing.
Farid Farahani forms Fisher Foods as a shell with minimal capital and commingles its funds with his personal accounts. He uses the corporation to sell spoiled goods while assuring buyers of quality. Creditors may pierce the veil because the corporation was an alter ego used to perpetrate fraud.
Consent procured by fraud or threats constitutes a constructive breaking even if the resident unlocks the door. The entry remains a trespass because the consent is invalid.
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Merger does not bar claims based on fraud. A buyer who accepts the deed may still sue for fraudulent misrepresentations that induced the contract.
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The complaint must state with particularity the circumstances constituting the fraud, including the who, what, when, and where of the misrepresentations. Intent may be alleged generally.
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A lawyer must withdraw when the client persists in using the lawyer's services to commit or further a crime or fraud after the lawyer has discussed the limitations on assistance.
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A plaintiff must show both unity of interest and ownership and that adherence to the corporate fiction would sanction fraud or promote injustice. Undercapitalization and commingling alone are insufficient without the fraud element.
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