Fraud Relationship between parties makes Difference

A statement of belief is not a statement of fact and thus is not fraudulent in Fraud. Puffing, or the expression of a glowing opinion by a seller in Fraud, is likewise not fraudulent. For example, a car dealer may represent that a particular vehicle is “the finest in the lot.” Although the statement may not be true, Fraud is not a statement of fact, and a reasonable buyer would not be justified in relying on Fraud The relationship between parties can make a difference in determining whether a statement is fraudulent.

In Fraud a misleading statement is more likely to be fraudulent when one party has superior knowledge in a transaction, and in Fraud they knows that the other is relying on that knowledge, than when the two parties possess equal knowledge example of Fraud : if the seller of a car with a bad engine tells the buyer the car is in excellent running condition, a court is more likely to find fraud if the seller is an auto mechanic as opposed to a sales trainee.

Misleading statements are most likely to be fraudulent in Fraud where one party exploits a position of trust and confidence, or a fiduciary relationship in Fraud. Fiduciary relationships in Fraud include those between attorneys and clients, physicians and patients, stockbrokers and clients, and the officers and partners of a corporation and its stockholders.


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