Section 42 Fraud

• Library: Remedies 2006

Fraud or other inequitable conduct that causes a mistake by the other party can form the basis of a claim for reformation of the contract. Citizens Bank of Festus v. Frazier, 177 S.W.2d 477, 483 (Mo. 1944); Hood v. Denny, 555 S.W.2d 337, 345 (Mo. App. W.D. 1977).

Courts have required that all the elements of fraud be shown before awarding reformation. See Hereford v. Unknown Heirs of Tholozan, 315 S.W.2d 412 (Mo. 1958); Strothcamp v. Sandy Ford Ranch, Inc., 440 S.W.2d 193, 195 (Mo. App. E.D. 1969). The elements of fraud are:

• a representation
• its falsity
• its materiality
• the speaker’s knowledge of the falsity or ignorance of the truth
• the speaker’s intent that the representation be acted on;
• the hearer’s ignorance of the falsity;
• the hearer’s reliance;
• the hearer’s right to rely; and
• the consequent injury.

Id. Absence of one of the essential elements will...