Saturday, April 16, 2011

Fraud

If you purchased a painting at a yard sale knowing that the painting was done by one of the old Masters and is worth a lot of money. Is it fraud to fail to disclose the information to the seller? It is not fraud the law of contracts does not require either party to disclose everything they know about the subject matter except in limited circumstances. A mistake by only one party is not enough to make a contract unenforceable. If purchaser of the garage sale painting knows it is worth a lot of money but the seller does not this is just a mistake of fact. It is fraud if one party has misrepresented facts about the subject matter. When the misrepresentation is made with the intention of deceiving the other party about the subject matter.
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