What are the elements of fraud under the California Fraud Act?

California, United States of America


The following excerpt is from Alliance Mortgage Co. v. Rothwell, 10 Cal.4th 1226, 44 Cal.Rptr.2d 352, 900 P.2d 601 (Cal. 1995):

"The necessary elements of fraud are: (1) misrepresentation (false representation, concealment, or nondisclosure); (2) knowledge of falsity (scienter); (3) intent to defraud (i.e., to induce reliance); (4) justifiable reliance; and (5) resulting damage." (Molko v. Holy Spirit Assn. (1988) 46 Cal.3d 1092, 1108, 252 Cal.Rptr. 122, 762 P.2d 46; see Seeger v. Odell (1941) 18 Cal.2d 409, 414, 115 P.2d 977; 1709.) 4 Only the last two elements are at issue in this case.

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