PJC Business

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.9

PJC 105.9

Instruction on Statutory Fraud—False Promise

Fraud occurs when— 1. a party makes a false promise to do an act, and 2. the promise is material, and

3. the promise is made with the intention of not fulfilling it, and 4. the promise is made to a person for the purpose of inducing that person to enter into a contract, and 5. that person relies on the promise in entering into that contract. [or] COMMENT When to use. PJC 105.9 is based on Tex. Bus. & Com. Code § 27.01(a)(2), 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 105.9 is designed to accompany the broad-form question at PJC 105.7 in cases involving an allegation of a false promise to perform an act with the present intent not to perform it. 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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