Texas Fraud Attorneys
When a business or individual engages in deception in order to make a profit or gain an advantage against another business, it is called business fraud. Fraud situations are not uncommon in commercial transactions and contractual agreements. Fraud can be committed by employees, contractors, and competitors with the aim to siphon money out of your business.
It is really important to guard yourself against fraud when you are involved in any kind of business transaction.
Steps To Take If Your Business Is Involved in A Business Fraud Dispute
Fraudulent Misrepresentation Tort
Fraud can actually cause a business to experience financial insolvency, which means that you need to file a lawsuit to get compensated. You also need legal counsel if you are accused of business fraud because such accusations can harm your reputation and future. Your legal counsel can help you with cases such as business fraud, breach of fiduciary duty, losses, and misrepresentation.
Your lawyer can also guide you when you are drafting business contracts or with complex transactions involving your business.
Types of Business Fraud
False Misrepresentation Attorney
Your business fraud lawyer in Texas can help you with the following types of business fraud:
- Fraudulent inducement: When a party, business, or individual lies about performance, financial assets, and other factors to influence another party to sign a contract, it’s called fraudulent inducement.
- Corporate misconduct: Is a situation where a business or individual is dishonest with the goal of gaining an advantage. Anyone involved in corporate misconduct can face criminal and civil actions.
- Fraudulent transfers: This is when a debtor transfers assets to a third party to keep the assets away from the collection efforts of creditors. The third-party may be a relative, business partner, or other legal entity.
What Are The Forms Of Business Fraud And Misrepresentation?
Business fraud and misrepresentation are complex and take a variety of forms that only an experienced lawyer can help you understand. Some of the forms include:
- Non-compete agreement violations
- Trademark and patent infringement
- Stealing trade secrets
- Kickbacks or bribery
- Misappropriation of trade secrets
- Fraudulent misrepresentation
What Is Fraudulent Misrepresentation?
Remedy For Fraudulent Misrepresentation
A fraudulent misrepresentation is when a person makes a false statement verbally, in writing, in silence, or through a gesture with the intention of having a material effect on a contract or deal. The following are some of the elements that you have to prove to establish fraudulent misrepresentation:
- a representation was made
- the representation was false
- that when made, the defendant knew that the representation was false or that the defendant made the statement recklessly without knowledge of its truth
- that the fraudulent misrepresentation was made with the intention that the plaintiff rely on it
- that the plaintiff did rely on the fraudulent misrepresentation
- that the plaintiff suffered harm as a result of the fraudulent misrepresentation
What Are The Remedies Of Fraudulent Misrepresentation
Negligent Misrepresentation Texas
The two possible remedies in a fraudulent misrepresentation case are either rescission of the contract or damages. Rescission of a contract simply means that a contract is no longer recognized as legally binding and is null and void. Parties that were bound by the contract are no longer expected to stick to their contractual obligations after the rescission.
The damages option is when the plaintiff is compensated for losses suffered because of a contract breach by a defendant.