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Fraud / Misrepresentation

A person commits fraud when he or she knowingly makes a material misrepresentation with the intent of inducing another person to act or refrain from acting to his or her detriment. It is also necessary to show that the material misrepresentation was justifiably relied upon when the "victim" acted or failed to act.

"Negligent misrepresentation" occurs when, in the course of a transaction in which a person has a pecuniary interest, a person supplies another with false information to guide their business transaction. That person who so misrepresents can be liable for any pecuniary loss caused by the justifiable reliance upon that false information.