Vendor Fraud

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Beyond mere breach of contract issues, Vendor Fraud refers to instances where purveyors of goods or services intentionally misrepresent the nature or quality of their wares or other material aspects of their agreement to perform.  Classic examples include misrepresenting deliverables and ‘bait and switch,’ referring to the intentional delivery of non-conforming products inferior to those promised.

Vendor fraud occurs in connection with ‘inducement’ to contract, where a Vendor knowingly and materially overstates his bona fides or capacity to perform.  By inducing a party to enter into a contract under false pretenses the value of the contract is inflated and the ultimate performance likely unsatisfactory.

There are three types of recognized misrepresentation in contract law. Fraudulent misrepresentation is considered active fraud and is the most serious. Fraudulent misrepresentation is not only misrepresenting a detail about a transaction, but doing so purposefully in order to deceive another party. The penalties can be severe.
Six conditions must be met for fraud to be present. They are:

An individual must make a false representation
The misrepresentation is material to the transaction
The misrepresentation is made with knowledge of its falsity or disregard as to its truthfulness
The misrepresentation is made with the intention of inducing action or lack of action from the other party
The other party relies on the lie to make their decision
The lie must proximately cause the other party to suffer damages

Fraudulent Misrepresentation is a civil offense and the immediate remedy in civil court for misrepresentation is recission. The court will act as if the contract or transaction never existed. It is important to note that the defrauded victim must act promptly! In addition the court can allow damages for losses suffered because of the lie.

Fraudulent misrepresentation is the most difficult type of misrepresentation to prove because of the need to demonstrate intent. If you have been victimized by misrepresentation Chuck Gabriel and the Gabriel Law Firm has the experience to successfully pursue these cases. Chuck works with individuals in metro Atlanta and adjoining counties and cities, as well as areas throughout the State of Georgia. Using its network resources, the Firm regularly partners with co-counsel throughout the United States and internationally when local or out-of-state the clients’ interests are best served by such collaboration and representation.

If you fell you have been a victim of fraud or misrepresentation contact Chuck today and he will help you determine your odds of success moving forward.

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