Fraud by false representation is complete without any deception or gain (Fraud Act 2006, s.2)
Kemal Arslan lists his car for sale on a website, describing it as having 'one owner from new and a full service history'. He knows both statements are false and hopes they will get him a higher price. He submits the listing through the website's automated form. The listing attracts no enquiries and he later deletes it. The jury are sure that he was dishonest. He is charged with fraud by false representation.
Which of the following best describes Kemal's liability?
Choose one answer to see the reasoning.
Worked answer
Correct answer C: He is guilty, because he dishonestly made false representations intending to make a gain; no one need be deceived, and no loss need result.
THE RULE TO REMEMBER
Fraud by false representation is complete when D dishonestly makes a false representation intending gain or loss; no one need be deceived and no gain or loss need result.
Fraud by false representation is complete without any deception or gain (Fraud Act 2006, s.2)
Under s.2(1) of the Fraud Act 2006, a person commits fraud by false representation if he dishonestly makes a false representation intending, by making it, to make a gain for himself or another or to cause loss to another or expose another to a risk of loss. A representation is false if it is untrue or misleading and the maker knows that it is, or might be (s.2(2)). Under s.2(5) a representation may be regarded as made if it is submitted in any form to any system or device designed to receive, convey or respond to communications, with or without human intervention. Kemal knew his statements were untrue, made them through the website's form, and intended to gain a higher price. The offence is complete when the representation is made. Nobody need be deceived, and no gain or loss need actually occur.
Why A is wrong: The full offence is complete when the false representation is made with the required intent; deception and a sale are not required.
Why B is wrong: Section 2(5) treats a representation submitted to a system or device as made, with or without human intervention.
Why D is wrong: Section 2 requires an intention to make a gain or cause loss, not actual loss.
Why E is wrong: Reliance by a victim is not an element of s.2; the offence focuses on D's conduct and state of mind.
A little more practice done.
Related questions
The test for dishonesty after Ivey v Genting and R v Barton
Which of the following best describes how the court will decide whether Leon acted dishonestly?
Burglary where the intent to steal is formed after entry (Theft Act 1968 s.9(1)(b))
Which of the following best describes Marcus's liability for burglary?
Oblique intention and the virtual certainty direction (R v Woollin)
Which of the following is the correct direction the judge should have given on intention?
A GOOD HABIT, DELIVERED
Tomorrow's question.
In your inbox.
One free question a day, with the answer and reasoning.
No course pitches. Just your daily practice.