Economic Torts

Question 1

What are the 6 elements of intentional misrepresentation?

Answer 1

1. D misrepresents a past or present material fact
2. D knows or believes the misrepresentation is false.
3. D intends to induce P to act or refrain from acting in reliance on the misrepresentation
4. Actual reliance by P (causation - must’ve actually relied)
5. reliance was justified
6. damages - P must suffer $$ loss

Question 2

What are the 4 elements of negligent misrepresentation?

Answer 2

1. D misrepresents a past or present material fact in a business or professional setting.
2. Breach of duty of care owed to particular P (i.e. D knew P could rely on the misrepresentation).
3. Actual and justifiable reliance by P
4. damages - P must suffer monetary loss.

Question 3

What is the tort of intentional interference with business relations?

Answer 3

It arises when a third party interferes with an existing contract.

Question 4

What are the 5 elements of intentional interference with business relations?

Answer 4

1. P has a valid contractual relationship or business expectancy (includes K btw P and a third party)
2. D has knowledge of the relationship or expectancy
3. D intentionally interferes with that relationship (must be intentional - negligence is insufficient)
4. D’s interference causes a breach or termination in P’s contract or expectancy
5. Damages

Question 5

What is the privilege defense to an intentional interference with business relations?

Answer 5

D’s conduct may be privileged when it is a proper attempt to obtain business or protect his interests (e.g. competing for P’s customers).