PJC Business

PJC 105.10

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.10 Question and Instructions on Benefiting from Statutory Fraud If you answered “Yes” to Question ______ [ 105.7 used with 105.8 or 105.9 ], then answer the following question. Otherwise, do not answer the following question. QUESTION ______ Did Deborah Dennis commit fraud against Paul Payne ? Fraud occurs when— 1. a person has actual awareness of the falsity of a representation or promise made by another person, and 2. fails to disclose the falsity of the representation or promise to the person defrauded, and 3. benefits from the false representation or promise. Actual awareness may be inferred where objective manifestations indicate a person acted with actual awareness. “Representation or promise” means the representation or promise you found to be fraud in response to Question ______ [ 105.7 used with 105.8 or 105.9 ]. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 105.10 submits liability under Tex. Bus. & Com. Code § 27.01(d) when the fraud of another person is separately submitted. If the underlying fraud of another person is not separately submitted under Tex. Bus. & Com. Code §27.01(a), additional instructions for finding a false representation or promise under Tex. Bus. & Com. Code § 27.01(a) are required as part of this submission. Broad-form submission. PJC 105.10 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). For further discussion, see PJC 116.2 regarding broad-form issues and the Casteel doctrine.

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