MONTANCES, BRYAN IAN L.

Torts Monday 530 to 730pm

Atty Higuit

Deceit is a tort or wrong which arises when a misrepresentation is made out of a false
statement of fact by one person or an entity with the express or deliberate intention of defrauding
another who subsequently suffers damage or loss.
Deceit occurs when a person makes a factual representation, knowing fully well it is false
or indifferent or recklss about its trutfulness, intenting the other person relies on it, and then act
in reliance on it cauisng loss to that party.
In order to establish that there is tort in deceit the following essential elements must
concur, namely, 1. the defendant makes a false repreentaion to the claimant, 2. The defendant
knows that the representation is false, alternatively he is reckless as to whether it is true or false,
3. The defendant itnents that the claimant should act in reliance on it, 4. The claimant does act in
reliance ont the representation and in result suffers loss or damage
For deceit to take place, fraudulent misrepresentation must be material in a sense that it
causes another person to relied and act on such. It must be shown that the injured party actually
relied upon the misrepresentation in such a way that the reprsentation is the immediate cause of
the injured party’s conduct and that without such representation, the injured party would not, in
all reasonable probability, have entered into the contract or transaction.
An example of deceit is when a person made a false insurance claim to the insurer in a
case of motor vehicle accident. When such person claims that another party has caused the
damage to his vehicle becuase of a collision with another motor vehicle but in fact it was his own
fault and the insurance company relied on it and eventually pays for the damages. The person
who made such misrepresentation shall be liable to the inusrance company for damages under
the concept deceit.