What element must be proven to establish a case of fraudulent misrepresentation?

To establish a case of fraudulent misrepresentation, it is essential to demonstrate that a false statement was made with knowledge of its falsity and with the intent to induce another party to rely on that statement and act accordingly. This element involves both the speaker's awareness that the statement is false and the desire to persuade the other party to take certain actions, thereby causing harm or disadvantage to that party.

The requirement of intent is crucial because it distinguishes fraudulent misrepresentation from mere negligent misrepresentation or honest mistakes. The party making the claim must show that they were misled by the false statement and took action they would not have taken had they known the truth. This direct relationship between the false statement and the actions taken by the deceived party forms the basis of the fraudulent misrepresentation claim.

While other options touch upon different aspects related to misrepresentation, they do not encapsulate the core element of intent and knowledge necessary to substantiate a fraudulent misrepresentation claim. For example, concealment of material facts or failure to disclose relevant information may suggest unethical behavior but do not inherently indicate the same level of intentional deception required for fraudulent misrepresentation. Thus, the focus on a knowingly false statement made with the intent to induce action is what solidifies the foundation of this