“The elements of fraud are (a) a misrepresentation (false representation, concealment, or nondisclosure); (b) scienter or knowledge of its falsity; (c) intent to induce reliance; (d) justifiable reliance; and (e) resulting damage.” (Hinesley v. Oakshade Town Center (2005) 135 Cal.App.4th 289, 294.) “Fraud in the inducement is a subset of the tort of fraud.” (Ibid.) Fraud in the inducement occurs when the promisor knows what she is signing but her consent is induced by fraud. (Id. at pp. 294-295.) Mutual assent is present and a contract is formed, but the contract is voidable by virtue of the fraud. (Id. at p. 295.)
The Supreme Court stated in Engalla, supra, 15 Cal.4th at pages 976-977, 64 Cal.Rptr.2d 843, 938 P.2d 903: “Actual reliance occurs when a misrepresentation is `”an immediate cause of [a plaintiff’s] conduct, which alters his legal relations,”‘ and when, absent such representation, `”he would not, in all reasonable probability, have entered into the contract or other transaction.”‘ [Citations.] `It is not . . . necessary that [a plaintiff’s] reliance upon the truth of the fraudulent misrepresentation be the sole or even the predominant or decisive factor in influencing his conduct. . . . It is enough that the representation has played a substantial part, and so has been a substantial factor, in influencing his decision.’ [Citation.] [¶] Moreover, a presumption, or at least an inference, of reliance arises wherever there is a showing that a misrepresentation was material. [Citations.] A misrepresentation is judged to be `material’ if `a reasonable man would attach importance to its existence or nonexistence in determining his choice of action in the transaction in question’ [citation], and as such materiality is generally a question of fact unless the `fact misrepresented is so obviously unimportant that the jury could not reasonably find that a reasonable man would have been influenced by it.’ [Citation.]” (Ibid.) The Supreme Court went on to explain that in the summary-judgment-like proceeding before it, the party asserting fraud “need only make a showing that the misrepresentations were material, and that therefore a reasonable trier of fact could infer reliance from such misrepresentations, in order to survive [a summary judgment motion], absent evidence conclusively rebutting reliance. [Citation.]” (Id. at p. 977, 64 Cal.Rptr.2d 843, 938 P.2d 903.)