13.4.7 Recipient's Reliance on Truth of the Representation.

• Jurisdiction: Arizona

13.4.7 Recipient’s Reliance on Truth of the Representation. Reliance, the seventh of the nine elements, is essential to proving a claim for fraud.⁷⁴ In legal terms, the “reliance element” represents cause in fact.⁷⁵ That is, a party asserting a claim for fraud must prove that it relied on the truth of the representation in acting to its detriment¾which is in addition to proving that it was unaware of the falsity of the statement. A party relies on the truth of the representation when it “is a substantial factor in determining the course of conduct which results in his loss.”⁷⁶ Logically, a representation is not considered to be a...