Texas Business & Commerce Code - Section 27.01. Fraud In Real Estate And Stock Transactions
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§ 27.01. FRAUD IN REAL ESTATE AND STOCK
TRANSACTIONS. (a) Fraud in a transaction involving real estate or
stock in a corporation or joint stock company consists of a
(1) false representation of a past or existing
material fact, when the false representation is
(A) made to a person for the purpose of inducing
that person to enter into a contract; and
(B) relied on by that person in entering into
that contract; or
(2) false promise to do an act, when the false promise
is
(A) material;
(B) made with the intention of not fulfilling it;
(C) made to a person for the purpose of inducing
that person to enter into a contract; and
(D) relied on by that person in entering into
that contract.
(b) A person who makes a false representation or false
promise commits the fraud described in Subsection (a) of this
section and is liable to the person defrauded for actual damages.
(c) A person who makes a false representation or false
promise with actual awareness of the falsity thereof commits the
fraud described in Subsection (a) of this section and is liable to
the person defrauded for exemplary damages. Actual awareness may
be inferred where objective manifestations indicate that a person
acted with actual awareness.
(d) A person who (1) has actual awareness of the falsity of a
representation or promise made by another person and (2) fails to
disclose the falsity of the representation or promise to the person
defrauded, and (3) benefits from the false representation or
promise commits the fraud described in Subsection (a) of this
section and is liable to the person defrauded for exemplary
damages. Actual awareness may be inferred where objective
manifestations indicate that a person acted with actual awareness.
(e) Any person who violates the provisions of this section
shall be liable to the person defrauded for reasonable and
necessary attorney's fees, expert witness fees, costs for copies of
depositions, and costs of court.
Acts 1967, 60th Leg., vol. 2, p. 2343, ch. 785, § 1. Amended by
Acts 1983, 68th Leg., p. 5208, ch. 949, § 1, 2, eff. Sept. 1,
1983.
Section: 24.009 24.010 24.011 24.012 24.013 26.01 26.02 27.01 27.02 34.01 34.02 34.03 34.04 34.05 35.01
Last modified: August 10, 2007
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