Fraud = commercial transactions.
On bar, it will be surrounding circumstances involving the purchase and sale of an item. (5 elements, but no affirmative defenses).
- Element 1: Δ must make an affirmative misstatement (misrepresentation of fact).
- EX: silence is not enough for fraud at common law.
- Element 2: + intent or recklessness concerning that misstatement. (scienter).
- A good faith mistake will not be actionable as fraud.
- Element 3: the purpose of the statement must be to induce the reliance of the Π. (must be central to the transaction).
- Element 4: Π must rely on the misstatement.
- Element 5: Π must suffer economically (damages; Π overpays)
- ON MBE: lied to you on purpose, with goal of ripping you off, and you fell for it, and you got screwed.