What are the elements of promissory fraud?

California, United States of America


The following excerpt is from Neman Real Estate Invs., LLC v. Oken, B263196, B265718 (Cal. App. 2017):

"'Promissory fraud' is a subspecies of the action for fraud and deceit. A promise to do something necessarily implies the intention to perform; hence, where a promise is made without such intention, there is an implied misrepresentation of fact that may be actionable fraud. [Citations.] [] An action for promissory fraud may lie where a defendant fraudulently induces the plaintiff to enter into a contract. [Citation.]" (Lazar v. Superior Court (1996) 12 Cal.4th 631, 638.) The elements of fraud are: "'(a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or "scienter"); (c) intent to defraud, i.e. to induce reliance; (d) justifiable reliance; and (e) resulting damage.' [Citations.]" (Ibid.)

1. Promise

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