FRAUD. To succeed in an action claiming damages for fraud the person aggrieved must first prove a representation of fact, made either by words, by writing or by conduct, which is in fact untrue. Mere concealment is not actionable unless it amounts not only to suppressio veri, but to suggestio falsi. An expression of opinion or of intention is not enough, unless it can be shown that the opinion was not really held, or that the intention was not really entertained, in which case the state of a man's mind is a matter of fact. Next, it must be proved that the representation was made without any honest belief in its truth, that is, either with actual knowledge of its falsity, or with a reckless disregard whether it is true or false. It was finally established, after much controversy, in the case of Derry v. Peek in 1889, that a merely negligent misstatement is not actionable. Further, the person ag grieved must prove that the representation was made with the intention that he should act on it, though not necessarily made directly to him, and that he did in fact act in reliance on it. Lastly the complainant must prove that, as the direct consequence, he has suffered actual damage capable of pecuniary measurement.
(See CONTRACT ; COMPANY.) For fraud, in its wider sense of dishonest dealing, see FRAUDS,