Making out a fraud claim.

Practice point: The cause of action will not lie where the only fraud claimed arises from the breach of a contract. A mere misrepresentation of an intent to perform under the contract is insufficient to sustain a cause of action to recover damages for fraud.

Student note: Conversely, a misrepresentation of material fact that is collateral to the contract and serves as an inducement for the contract is sufficient to sustain the cause of action.

Case: Gorman v. Fowkes, NY Slip Op 05614 (2d Dept. 2012).

Here is the decision.

Tomorrow’s issue: Constructive trusts.