Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraud
A)if Mark is unaware of the fact and the failure.
B)if the amount of consideration received is grossly inadequate.
C)if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy.
D)under any circumstances.

Question

Quizplus · Accepted Answer

Fraud requires the defendant to have knowledge of the material fact he is failing to disclose. In this case, Mark knows of the serious defect and it is unlikely Nancy would know about it, so his failure to disclose it constitutes fraud. The gross inadequacy of consideration (B) may indicate duress, but it is not a necessary element for fraud. A lack of awareness of the fact or failure (A) would not meet the knowledge requirement for fraud. Fraud does not occur under any circumstance (D).

Mark Fails to Reveal a Material Fact in a Business