What is the difference between civil fraud and breach of contract?
Civil fraud and breach of contract are two distinct legal theories that involve different elements and can have different remedies. Civil fraud can occur when an individual has been defrauded of money or property. To prove fraud, a plaintiff must show that false representations were made to induce them to act, the misrepresentation was made knowingly or recklessly, and the plaintiff sustained financial losses as a result of their reliance on the misrepresentation. In Pennsylvania, a plaintiff needs to also prove that the defendant had an intent to deceive and/or harm the plaintiff. A breach of contract, on the other hand, is a legal decision that occurs when one party fails to perform according to the terms of a contract. To prove breach of contract, a plaintiff must show that a valid contract existed between the parties, the plaintiff performed their obligations under the contract, and the defendant failed to live up to their obligations. In Pennsylvania, the breach of contract claim must also include evidence that the defendant had the intent to breach the contract. The remedies for civil fraud and for breach of contract also differ, with the remedy for fraud being punitive damages and the remedy for breach of contract being a monetary award to compensate the plaintiff for their losses.
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