The tort of deceit, also known as the tort of fraudulent misrepresentation, is a legal cause of action that arises when one party intentionally deceives another party, causing them to suffer harm or loss. To establish a claim for deceit, the plaintiff must prove that the defendant made a false statement of fact, knowing it to be false or recklessly without regard for its truthfulness, with the intent to induce the plaintiff to act or rely on the statement. The plaintiff must also demonstrate that they justifiably relied on the false statement and suffered damages as a result. The tort of deceit is a common ground for seeking damages in cases of fraud, deceptive advertising, and other forms of intentional misrepresentation. It serves to protect individuals and businesses from dishonest conduct and to provide redress for those who have been misled or harmed by such actions.
The tort of deceit overlaps with Misrepresentation, but the tort does not require that the defendant and the claimant be in a contractual relationship. For the claim to succeed, the claimant must show that
- the defendant made a representation to him
- the representation was false at the time it is acted upon
- the was an element of dishonesty — the misrepresentation must be wilfully false. Carelessness will not suffice (Derry v Peek 1888)
- the representation was intentional, even though the defendant’s motive may have been laudable (Polhill v Walter 1832)
- the claimant was, in fact, deceived; that is, the representation was known to him (Horsfall v Thomas 1862)
- the claimant suffered loss or damage
It has consistently been held that there is no test of ‘remoteness’ when assessing damages for deceit. Any loss that is directly attributable to the deceit must be made good by the defendant (Clef Aquitaine v Laport 2001).
If the effect of the deceit is to cause the claimant to enter into a contract, then a claim under s.2(1) of the misrepresentation act (1967). This has the effect of requiring the defendant to show good grounds for believing his representation to be true.
The tort of deceit, also known as the tort of fraud or fraudulent misrepresentation, occurs when one party intentionally deceives another party, causing harm or loss.
The elements of the tort of deceit typically include:
- A false representation or statement of fact made by the defendant.
- Knowledge that the representation is false or made recklessly without regard for its truthfulness.
- Intent to deceive the plaintiff.
- Reliance by the plaintiff on the false representation.
- Damages suffered by the plaintiff as a result of the reliance.
False representations that can constitute deceit include statements, actions, or omissions that are misleading or deceptive, such as false statements of fact, concealment of material information, or half-truths designed to mislead.
In some circumstances, silence or non-disclosure of material information can constitute deceit if there is a duty to disclose, such as in cases involving fiduciary relationships, contractual obligations, or statutory requirements.
Some examples of deceitful behaviour are:
- Making false statements about the quality or condition of a product.
- Concealing defects in property being sold.
- Falsifying financial documents or records.
- Providing false information to induce someone to enter into a contract or transaction.
Some remedies available for the victims of deceit include:
- Rescission of the contract or transaction.
- Monetary damages to compensate for losses suffered.
- Injunctions to prevent further deceptive conduct.
- Punitive damages in cases of egregious misconduct.
Yes, deceitful conduct can give rise to both civil liability under tort law and criminal liability under various statutes, such as laws prohibiting fraud, embezzlement, or false pretences.
Deceit requires intentional or reckless conduct, whereas negligent misrepresentation involves a false statement made without reasonable care or due diligence. Negligent misrepresentation may give rise to liability under the tort of negligence rather than deceit.
In some cases, a third party may be held liable for deceit if they knowingly participated in or assisted the deceitful conduct, such as aiding and abetting the fraud or conspiring with the primary wrongdoer.
To prove deceit in a legal proceeding, you must present evidence demonstrating each element of the tort, including the false representation, the defendant’s knowledge and intent, the plaintiff’s reliance, and the resulting damages. Consulting with a qualified attorney experienced in fraud and deceit cases is advisable for guidance on gathering and presenting evidence effectively.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
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