Elements Of Deceit

Gunn v NevR-Fail Motors Pty Ltd and Williams – Tampered odometer reading – Deceit

Deceit refers to making a false representation of fact, knowingly or recklessly, with the intention that another will rely on it to his or her detriment and where the plaintiff has done so suffering damage in the process: Magill v Magill.

Elements of Deceit:

1. False Representation

2. Knowingly or without belief in its truth

3. With intention

4. Damage

False Representation

The tort of deceit is committed when a defendant makes a false representation to the plaintiff: Given v CV Holland. The false representation is the tampered odometer reading. Upon the facts, NevR-fail Motors did not make a false representation to the plaintiff as they did not change

Based on the facts, NevR-Fail Motors did not know the odometer had been tempered with however, they were reckless and careless in the fact that they did not check to see if the odometer was correct. Williams made the representation, which was the tampered odometer, with the knowledge that it was false.

With Intention

The third element requires that the defendant made the representation with the intention that it be relied upon by the plaintiff: Magill. The first defendant, NevR-Fail Motors, did not know the odometer reader had been tampered with and therefore did not intend for the plaintiff to rely on the false representation. The second defendant, Williams, intended for the plaintiff, whoever it be, to rely on the false representation.

Damage

To be actionable, the plaintiff’s reliance on the false representation must result in damage to the plaintiff: Gould v Vaggelas. If the odometer reading was correct and the time of the plaintiff’s purchase, the car would have been sold for $5,000 instead of $12,000. Therefore, the plaintiff has suffered an economic loss of