LEGAL PRINCIPLE: EVIDENCE LAW – Fraudulent Misrepresentation – When Fraud is Proved
PRINCIPLE STATEMENT
Fraud is proved when it is shown that a false representation has been made by the representor (1) knowing, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false; the third case being but an instance of the second.
RATIO DECIDENDI (SOURCE)
Per Iguh, JSC, in Afegbai v. A.G., Edo State & Anor (2001) NLC-1111996(SC) at p. 29; Paras A–B.
"Fraud is proved when it is shown that a false representation has been made by the representor (1) knowing, or (2) without belief in its truth, or (3) recklessly, careless whether it be true or false; the third case being but an instance of the second."
EXPLANATION / SCOPE
Fraud is established by proving: (1) actual knowledge of falsity; (2) without belief in truth (positive disbelief); or (3) reckless indifference to truth or falsity. Recklessness is a form of “without belief in truth”—the representor makes the statement not caring if it is false. This is the test from Derry v. Peek (1889). Mere carelessness or negligence without dishonesty does not constitute fraud. The statement must be false, and the representor must have made it with a culpable mental state. Honest belief, even if unreasonable, negates fraud. The burden is on the representee to prove the required mental element.