I searched for the definition of "scam" in the internet. I was directed to this article on "fraud" in Wikipedia. Fraud is a criminal offense, and has to be prosecuted by the state. It is not a matter of "buyer's beware".
Common law fraud (presumably US or UK) has nine elements 1:a representation of an existing fact; 2:its materiality; 3:its falsity; 4:the speaker's knowledge of its falsity; 5:the speaker's intent that it shall be acted upon by the plaintiff; 6:plaintiff's ignorance of its falsity; 7:plaintiff's reliance on the truth of the representation; 8: plaintiff's right to rely upon it; and 9:consequent damages suffered by plaintiff.
If you look at most land banking companies advertising on the web they break nearly all of these. However i would say No 8: The plaintiffs right to rely on it is how much will "buyer beware" be applied. A tiny portion of the population seem to be highly susceptible to scams and there is almost nothing you can do to stop them giving their money away.
Most people also never go past the (commission only) salesperson in validating their investments.
this does not apply to all countries. in singapore, if you have your eyes open then there is no fraud.
ReplyDeleteI found this interesting
ReplyDeleteCommon law fraud (presumably US or UK) has nine elements
1:a representation of an existing fact;
2:its materiality;
3:its falsity;
4:the speaker's knowledge of its falsity;
5:the speaker's intent that it shall be acted upon by the plaintiff;
6:plaintiff's ignorance of its falsity;
7:plaintiff's reliance on the truth of the representation;
8: plaintiff's right to rely upon it; and
9:consequent damages suffered by plaintiff.
If you look at most land banking companies advertising on the web they break nearly all of these. However i would say No 8: The plaintiffs right to rely on it is how much will "buyer beware" be applied. A tiny portion of the population seem to be highly susceptible to scams and there is almost nothing you can do to stop them giving their money away.
Most people also never go past the (commission only) salesperson in validating their investments.