These fraud allegation clauses can be used in a complaint when asserting a fraud claim in a commercial litigation case. This clause includes practical guidance, drafting notes, and an alternate clause. A claim for fraud generally arises out of a material misrepresentation or material omission of fact, typically used to induce a party to enter into, or avoid entering into, a particular transaction. To successfully prove a fraud claim, the plaintiff must show: (1) a material misrepresentation or material omission of a presently existing or past fact; (2) knowledge or belief by the defendant of the falsity of the material misrepresentation or omission (known as scienter); (3) an intention that the other party rely on the misrepresentation or omission; (4) actual and reasonable reliance on the misrepresentation or omission by the other party; and (5) resulting damages. See Banco Popular N. Am. v. Gandi, 876 A.2d 253, 260 (N.J. 2005); J&R Multifamily Group, Ltd. v. U.S. Bank Nat'l Ass'n, ...