What is active fraud? What four elements must be present to ...

[09madisonrousseau09]

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

Question 2

When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person:
 A) can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract.
 B) can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services.
 C) cannot recover the value of the services because they were rendered under a unilateral mistake of law.
 D) can have the party receiving the services arrested for obtaining property by false pretenses.

[cpetit11]

Answer to Question 1

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.

Answer to Question 2

B