Section 8.2 Nature of Fraud

• Library: Tort Law 2016

A. (§8.2) Nature of Fraud

Fraud is generally defined as any "willful, malevolent, act directed to perpetrating a wrong to the rights of another." Abbey v. Heins, 546 S.W.2d 553, 557 (Mo. App. E.D. 1977) (quoting Judd v. Walker, 114 S.W. 979, 980 (Mo. 1908)). Missouri recognizes two categories of fraud:

1. Fraud in the procurement

Fraud in the inducement

Both types involve a misrepresentation intentionally or recklessly made by the defendant and relied on by the victim-plaintiff, causing the plaintiff to do an act that the plaintiff would not otherwise have done.

For fraud in the procurement, also called fraud in the factum, the representation usually consists of telling the victim that the victim’s act is of a different nature than it actually is. For example, deceiving a person into signing a release of claims by misrepresenting that the document is not...