Fraud in the inducement of a contract generally requires proof that a party:

Giải thích

Civil Code §1572 defines actual fraud and §1709 the tort of deceit: a representation of a material FACT, known to be false or made recklessly without belief in its truth, made to induce the other party to act, justifiable reliance, and resulting damage. (a) fails on the fact element — an honest opinion or prediction about future value is not a statement of existing fact, which is why sales talk is not actionable. (b) fails on scienter: a statement true when made does not become fraud because events later disappoint. (c) is no representation at all; drafting is not a statement of fact. The distinction pays: fraud is a tort, so unlike a contract claim it opens the door to punitive damages under Civil Code §3294, and where the fraud induced a home improvement contract, to the $500 penalty and fees in B&P §7160.