statement knew or should have known that it was false at the time it was made

Statement knew or should have known that it was false

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statement knew, or should have known, that it was false at the time it was made Reliance – victim of a misrepresentation must show that he or she reasonably relied on the misstatement at the time of contracting Injury – last element of fraud action is a showing by the innocent party that he or she suffered an injury, usually an economic loss, as a result of the misrepresentation Remedies for Fraud - Once fraud is established, the defrauded party always has the right to rescind the contact - Recession is designed to restore the parties to their original positions - As a general rule, the defrauded party must elect either to rescind the contract or to recover damages Innocent misrepresentation If all the elements of fraud are present in a particular case, except that the person making the misstatement honestly (and reasonably) believed the statement to be true, that person is guilty of innocent misrepresentation rather than fraud Mistake Cases whether if both parties were mistaken as to a material fact at the time of contracting, either party can rescind the agreement – If only one of the parties was mistaken, recession will not be granted unless that person can show that the other party knew, or should have known, of the mistake at the time the contract was made
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Mutual Mistake : a contract that can be set aside if there is a mutual mistake as to the existence, the identity, or the character of the subject matter of the contract Unilateral mistake: Where only one party to a contract is mistaken about a material fact, recession is ordinarily not allowed unless the mistake was (or should have been) apparent to the other party Duress - A person will seek to escape liability under a contract on the ground that he or she was forced to enter into it - If the degree of compulsion is so great as to totally rob the person of free will, duress exists, and the contract can be rescinded - Early definition that still stands: any wrongful threat of one person by words or other conduct that induces another to enter into a transaction under the influence of such fear as precludes him from exercising free will and judgement -
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