In cases of fraud or deceit, what must the defendant do to be liable?

To establish liability in cases of fraud or deceit, it is essential for the defendant to falsely represent a present or past fact. Fraudulent behavior hinges on the act of making a false statement known to be untrue, misleading another party and inducing them to act based on that misinformation. This misrepresentation is a critical component because it directly impacts the victim's decisions and causes harm.

In legal terms, for fraud to be actionable, it is not sufficient for the defendant to merely act in good faith, communicate truthfully, or provide warranties; rather, the core issue is the intentional deception regarding facts. The law requires that the misrepresentation be about existing circumstances—either in the present or in the past—demonstrating that deceit is at the heart of fraud. Thus, when a defendant engages in such false representation knowingly, they can be held liable for the fraud they commit.