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Question
The Skipper really liked to fish and purchased a used boat from the S.S. Minnow, Inc. Gilligan was the salesman for S.S. Minnow, Inc. Gilligan had never seen the boat before that afternoon and did not know anything about the history of the boat. The Professor, another salesman for S.S. Minnow, had acquired the boat that morning from the Howells. After the Professor acquired the boat, he left the office for a three-hour meeting. When Skipper asked Gilligan if the boat had ever been in a wreck, Gilligan quickly responded, "No, it has never been in a wreck." In fact, the boat had been seriously damaged in a wreck and even though it had been repaired, it was worth much less than the value it would have been had it not been in a wreck. When Skipper learned about this, he sued S.S. Minnow, Inc. and Gilligan for damages, claiming they committed fraud. S.S. Minnow and Gilligan raised the defense that Gilligan was not aware that the statement he made was false and that he never intended to deceive Skipper.
Discuss the elements for fraud. Discuss if Gilligan's statement constituted fraud.
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