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Intentional false statement of a material fact by a party knowing it's false, made to induce another party to rely on it. Typically, a seller may lie about a product's efficacy to make a sale.

A false statement made carelessly that is reasonably relied upon and causes harm. An example is an accountant making a mistake on a report that is relied upon by an investor.

A false statement made without knowledge of its falsity but with honest belief in its truth. A scenario may include a real estate agent unknowingly giving incorrect information about property boundaries.

The deliberate omission or withholding of material information with the intent to deceive. Commonly occurs when a seller knows about a defect in a product but chooses not to disclose it.

The right to have a contract declared void and be restored to the position before the agreement, often a remedy in fraudulent scenarios. For example, when a person is induced into a contract by false promises.

The significance of a misrepresented fact in the decision-making process of the misled party. For example, misstating a car's accident history, which is a key deciding factor for a buyer.

The act of depending on the truth of the misrepresented information when making a decision. For instance, an investor relying on a falsified financial statement to invest in a company.

The knowledge of the wrongdoing, or intent to deceive or defraud, which is a requirement for fraud to exist. An instance of scienter is when a business knowingly sells a hazardous product.

Exaggerated or boastful statements about a product or service that are subjective and not legally binding. Puffery becomes fraud when it crosses the line into deceit. An example could be a salesperson claiming their product is 'the best' without evidence.