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Justifiable Reliance in Auto Fraud Cases

Justifiable reliance is an important component of many tort and contract claims such as fraudulent misrepresentation, negligent misrepresentation and promissory estoppel in contract. Justifiable reliance refers to a person’s justifiable dependence on another person’s representations. The element of justifiable reliance requires plaintiffs to show that they relied on the misrepresentation in purchasing a vehicle for the amount paid. The false impression conveyed by the seller’s actions must have influenced the buyer’s decision to proceed with the transaction.

Reliance is not justifiable if another person of similar intelligence, education, or experience would not have relied on the alleged representation. One problem involving the justifiable reliance element is determining the extent to which the relying party is responsible for investigating the accuracy of the statement on which it relies. While partial reliance should be sufficient to meet this element, if the seller can show that the buyer clearly intended to buy the car no matter what was said, then the buyer’s fraud case will fail. Sellers often try to challenge the consumer’s justifiable reliance by arguing that the buyer’s reliance on oral statements is unjustified if the contract documents clearly disclose the true facts or by claiming that their comments were simply sales talk not meant to be relied upon.

Handling fraud cases, as well as the numerous elements involved can be tough, but the attorneys at Darfoor Law Firm can help you through it. For a free consultation call 1-833-DARFOOR. 

For more information on justifiable reliance and auto fraud, or if you have any questions or suggestions please contact our Facebook page. We look forward to receiving your feedback.

 

 

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