What is the difference between civil fraud and breach of contract?

Civil fraud and breach of contract are two separate legal issues that may arise in the context of a business or other civil dispute in California. The two concepts are distinct and, while there is some overlap, they can also stand on their own. Civil fraud is defined as a deliberate misrepresentation of facts, or a false promise or statement made with the intention of defrauding another person or entity. To bring a civil fraud claim in California, a plaintiff must prove three elements: (1) a false representation was made; (2) knowledge of the falsity; and (3) intent to induce reliance on the false representation. In contrast, breach of contract is a legal cause of action that arises when a party fails to perform one or more of its contractual obligations. Unlike fraud, breach of contract does not require intent to deceive or defraud. Rather, a breach of contract claim may be based on negligence or other acts that fall short of intentional fraud. Civil fraud and breach of contract claims have different remedies. A successful breach of contract claim typically entitles the plaintiff to damages for losses that resulted from the breach. By contrast, a successful civil fraud claim may entitle the plaintiff to punitive damages and other remedies aimed at punishing the defendant for the fraud. Ultimately, the key difference between civil fraud and breach of contract is the intent of the defendant. Fraud requires a deliberate intent to deceive or defraud, while breach of contract can result from an accidental or negligent failure to fulfill one’s obligations.

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What is the difference between civil fraud and breach of contract?

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