Final answer:
To accuse someone of fraud, three elements must be proven: misrepresentation of a material fact, the defendant's knowledge of falsehood, and the plaintiff's reliance on the misrepresentation causing damage. Remedies include rescission of the contract or compensatory damages. Possible defenses might include denying misrepresentation or that the plaintiff did not rely on the defendant's statements.
Step-by-step explanation:
To accuse David of fraud in connection with a contract, Sarah must prove three essential elements. First, she must show that a misrepresentation of a material fact was made by David. Second, she must demonstrate that David had knowledge of the falsehood or was reckless about whether it was true or false. Lastly, Sarah must provide evidence that she relied on the misrepresentation and that the reliance resulted in damages.
If these elements of fraud are proven to be true, the possible remedies for Sarah could include rescission of the contract (meaning the contract is declared void), or compensatory damages to restore her to the position she would have been in had the fraud not occurred. Punitive damages may also be available if the fraud was particularly egregious.
As for possible defenses for David, he might argue that no misrepresentation occurred or that Sarah did not rely on any statements he made in deciding to enter into the contract. Additionally, he could claim that even if there was a misrepresentation, it was not material to the contract or Sarah's decision-making process, and therefore it did not cause her any harm.