Fraud occurs in business all of the time in the context of a real estate transaction, sale of business, sale of goods, performance of services and more. To prove a case for fraud, a plaintiff must show that (1) a defendant made a representation to the plaintiff; (2) that the representation was material; (3) that the representation was false; (4) when the defendant made the representation, the defendant either knew the representation was false or made the representation recklessly; (5) the defendant made the representation with the intent that the plaintiff act on it; (6) the plaintiff relied on the representation; and (7) that the representation caused the plaintiff injury.
While fraud is often a primary claim in a lawsuit, it is often an alternative claim that gives rise to punitive damages and other forms of relief not available under breach of contract. If you think you or your small business are a victim of fraud, please contact a Houston attorney experienced in dealing with such matters.