Contracts I

Restatement Second of Contracts § 162

Restatement Second of Contracts § 162

When a Misrepresentation Is Fraudulent or Material

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1. A misrepresentation is fraudulent if the maker intends his assertion to induce a party to manifest his assent and the maker
   1. knows or believes that the assertion is not in accord with the facts, or
   2. does not have the confidence that he states or implies in the truth of the assertion, or
   3. knows that he does not have the basis that he states or implies for the assertion.
2. A misrepresentation is material if it would be likely to induce a reasonable person to manifest his assent, or if the maker knows that it would be likely to induce the recipient to do so.