Opinion ID: 1111913
Heading Depth: 2
Heading Rank: 1

Heading: Fraud Theory

Text: The elements of a claim of fraud are well established as follows: (1) a representation, (2) its falsity, (3) its materiality, (4) the speaker's knowledge of its falsity or ignorance of its truth, (5) the speaker's interest that it should be acted upon by the hearer and in the manner reasonably contemplated, (6) the hearer's ignorance of its falsity, (7) the hearer's reliance on its truth, (8) the hearer's right to rely thereon, and (9) the hearer's consequent and proximate injury. Martin v. Winfield, 455 So.2d 762, 764 (Miss. 1984) and cases cited therein. In addition, proof of fraud must be by clear and convincing evidence. Id. See Cotton v. McConnell, 435 So.2d 683, 685 (Miss. 1983). In a case such as the instant case, a plaintiff who successfully proves fraud is entitled to numerous remedies. Under traditional tort law, the winning party may rescind the contract and be put in status quo by recovery of the purchase price. Also, the successful party may invoke the provisions of the Uniform Commercial Code in Miss. Code Ann. § 75-2-721 (1972) which provides: Remedies for material misrepresentation or fraud include all remedies available under this chapter for nonfraudulent breach. Neither rescission or a claim for rescission of the contract for sale nor rejection or return of the goods shall bar or be deemed inconsistent with a claim for damages or other remedy. See Bryan Construction Co. Inc. v. Thad Ryan Cadillac, Inc., 300 So.2d 444 (Miss. 1974). The damages available under the UCC include, but are not limited to, compensatory damages under Miss. Code Ann. § 75-2-714 (1972), incidental damages under § 75-2-715(1), and consequential damages under § 75-2-715(2). Id. at 448. Additionally, in a fraud case, punitive damages are assessable upon a showing of willful and intentional wrong, or for such gross negligence or reckless conduct as is equivalent to such wrong. Gardner v. Jones, 464 So.2d 1144, 1149 (Miss. 1985) quoting Tideway Oil Programs, Inc. v. Serio, 431 So.2d 454, 460 (Miss. 1983).