PJC Business

PJC 105.8

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.8

Instruction on Statutory Fraud—Factual Misrepresentation

Fraud occurs when— 1. there is a false representation of a past or existing material fact, and 2. the representation is made to a person for the purpose of inducing that person to enter into a contract, and 3. the representation is relied on by that person in entering into that contract. [or] COMMENT When to use. PJC 105.8 is based on Tex. Bus. & Com. Code § 27.01(a)(1), which applies only to fraud in a transaction involving real estate or stock in a corporation or joint stock company. If there is a dispute about whether the transaction involves real estate or stock in a corporation or joint stock company, additional instructions may be necessary. Accompanying question. PJC 105.8 is designed to follow PJC 105.7. Use of “or.” If more than one instruction is used, each must be separated by the word or , because a finding of any one type of misrepresentation would support recov ery. See Lundy v. Masson , 260 S.W.3d 482, 494 (Tex. App.—Houston [14th Dist.] 2008, pet. denied) (approving the use of “or”).

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