What is the definition of fraud in a tort context?

In the context of tort law, fraud is specifically defined as the intentional misrepresentation of a material fact made with the intent to deceive another party, who then relies on that misrepresentation to their detriment. This definition captures the essential elements of fraud: the intent to mislead, the existence of a significant fact that is misrepresented, and the resulting harm when the deceived party acts on the false information.

Intentional misrepresentation is distinct from unintentional acts, such as negligent misstatement, which occurs when a party makes a false statement without intent to deceive but fails to exercise reasonable care in verifying the truth. Similarly, defamation involves false statements harming a person's reputation but does not necessarily involve the intent to deceive for the purpose of obtaining something of value. Thus, the correct choice accurately reflects the essence of fraud as a tort, highlighting the deliberate aspect and the importance of material facts in such misleading situations.