What Is 'Fraud' Under Contract Law?

5064 views • Jul 26, 2017

A breach of promise is an antiquated tort that is no longer used in modern legal systems. It was commonly used in engagement contracts between a man and a woman. A promise to marry was a form of a quasi-legal contract. If a man were to repudiate his promise to marry it would be viewed as a form of constructive breach What is fraud? Fraud is defined to be "an intentional perversion of truth" or a "false misrepresentation of a matter of fact" which induces another person to "part with some valuable thing belonging to him or to surrender a legal right." Fraud is usually making a material misstatement that another person relies upon to their detirment. The hardest part of proving fraud is proving the required element of “scienter.” Scienter is proving that the person had knowledge of the falsity when he made the statement. Fraud may be actionable both criminally and civilly.

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