Pleading and proving PROMISSORY FRAUD:

14 Sep

PROMISSORY FRAUD:

The tort of deceit or fraud by a false promise requires that each and all of the following elements be proved:

(1) a promise made regarding a material fact without any intention of performing it;

(2) the existence of the intent at the time of making the promise;

(3) the promise was made with intent to deceive or with intent to induce the party to whom it was made to enter into the transaction;

(4) the promise was relied on by the party to whom it was made;

(5) the party making the promise did not perform;

(6) the party to whom the promise was made was injured.

(Regus v. Schartkoff (1957) 156 Cal.App.2d 382, 389.)

“An action for promissory fraud may lie where a defendant fraudulently induces the plaintiff to enter into a contract.” (Engalla v. Permanente Medical Group, Inc. (1997) 15 Cal.4th 951, 973-974; Tenzer v. Superscope, Inc. (1985) 39 Cal.3d 18, 30.)

A promise is fraud only if made without a present intent to perform. An honest and good-faith promise without intention to deceive and in the honest expectation that it will be fulfilled, even if not carried out, is not fraud. (Magpali v. Farmers Group, Inc. (1996) 48 Cal.App.4th 471, 481).

 

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