What is active fraud? What four elements must be present to constitute fraud as a result of express misrepresentation?

Question

​ What is active fraud?  What four elements must be present to constitute fraud as a result of express misrepresentation?

Quizplus · Accepted Answer

The Answer is Active fraud occurs when a party actually does something or takes steps to cause a fraud. Active fraud may occur either by express misrepresentation or by concealment of material facts. The following four elements must be present to constitute fraud as a result of express misrepresentation:There must be a misrepresentation: A false statement of a material fact.
The misrepresentation must be made by one who knew it to be false or made it in reckless disregard for its truth or falsity.
The misrepresentation must be made with the intent to induce the innocent party to act.
The innocent party must justifiably rely on the false statement and make a contract.

​ What Is Active Fraud? What Four Elements Must Be

What Is Active Fraud? What Four Elements Must Be