Final answer:
In cases of fraud, the condition known as 'reliance' refers to the injured party's trust in the fraudulent misrepresentation, which must have been a substantial factor in their decision to act, resulting in harm. Other factors like materiality, intent, and concealment also play roles, but reliance directly pertains to the action taken based on fraudulent information.
Step-by-step explanation:
The condition that requires the misrepresentation to have been a substantial factor upon which the injured party relied in a scenario of fraud is known as reliance. In the context of legal issues surrounding fraud, reliance refers to the trust or confidence that the defrauded party placed in the fraudulent statement, acting upon it as if it were true. To establish a fraud claim, it must be shown that the injured party reasonably relied on the misrepresentation and that this reliance resulted in damages.
The requirement of reliance ensures that there is a direct connection between the misrepresentation and the harm suffered. For example, if an individual is persuaded to enter into a contract based on false information presented by the other party, and this results in a financial loss, the deceived individual must prove that they relied on the false statement when agreeing to the contract, and that this reliance was a substantial factor in causing the harm.
In legal terms, materiality Suggests that the misrepresentation must be significant enough that it would have influenced a reasonable person's decision-making process. Intent implies that the individual making the misrepresentation did so knowingly or with reckless disregard for the truth. Concealment involves hiding material facts with the intention to deceive. While all these factors are important to fraudulent activities, reliance specifically addresses the victim's trust in the misrepresentation.