Q: What is the difference between a breach of contract and fraud?
A:There is quite a difference between a New York breach of contract and a New York fraud case. When two parties enter a contract, if one party has been let down and harm has been done, then he possibly could sue for a breach of contract or for fraud. Fraud and a breach of contract cases are brought to court for different reasons.
For a New York breach of contract case, the victim must prove only that he followed through on his end of the contract and performed all required duties, while the other party in the contract failed to follow through on his contractual duties.
Fraud, on the other hand, often involves an intended deception. If one party entered into a contract with no intention or ability to follow through with the contract, that could be a case of fraud. The victim must prove:
- That the other party misrepresented himself,
- That the victim relied on the other party with good cause, and
- That the contract led to a detrimental outcome for the victim.
Essentially, a breach of contract occurs when one party fails to follow through with a contract. Fraud occurs when one party has no intention of completing his contractual obligations.
Both fraud and a breach of contract can be messy situations. If you suspect you are a victim of either fraud or a breach of contract, then you should have a New York business attorney on your side to help you through this difficult time. For questions about fraud or breach of contract cases, contact the Law Offices of Jonathan M. Cooper. You can also request a complimentary copy of their book, 3 Reasons That Your Employment Agreement May Not Be Worth The Paper It's Printed On.