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  • What Happens When Business As Usual Becomes Unfinished Business?
January 25, 2021

What Happens When Business As Usual Becomes Unfinished Business?

What Happens When Business As Usual Becomes Unfinished Business?

by Kara Lawrence / Tuesday, 12 March 2019 / Published in Breach of Contract, Civil, Entrepreneur

It has been well established for decades in Georgia law that the Plaintiff can plead alternative theories of both breach of contract and fraud and is entitled to pursue inconsistent remedies until judgment. “Affirmance of the contract by the defrauded party does not necessarily deprive him of the right to sue for damages for fraud, as the right to affirm and the right to fraud damages coexist.”

Under O.C.G.A. § 13-5-5, fraud renders contracts voidable at the election of the injured party. Fraud ordinarily gives injured party option either to rescind contract so induced, or, by affirming contract, to claim damages as compensation. 

What are the essential elements to show fraud? To prove fraud and deceit, you have to show: (1) that defendant made representations; (2) that at time defendant knew were false (or had what law regards as equivalent of knowledge); (3) that defendant made the representations with intention and purpose of deceiving plaintiff; (4) that plaintiff relied upon such representations; and (5) that plaintiff sustained alleged loss and damage as proximate result of the representations having been made. 

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