Solicitors Qualifying Examination (SQE) Practice Exa\

What is the requirement of MR in the case of fraud by failing to disclose information?

1. Knowing the representation is true.

2. Making a false representation willingly.

3. Dishonestly knowing the representation is false to gain advantage.

4. Failing to act when required.

The correct answer is: Dishonestly knowing the representation is false to gain advantage.

The correct answer emphasizes the importance of the individual's state of mind regarding their actions in relation to fraud by failing to disclose information. When assessing responsibility for fraud, it is necessary to establish that the individual acted dishonestly and with knowledge that their failure to disclose relevant information was calculated to deceive and gain an advantage. In the context of this question, the requirement entails that the person knew that their representation was false and pursued an advantage as a result of this omission. This reflects a deliberate intention to mislead and is critical in proving the fraudulent nature of the act. The understanding lies in the nature of fraud, where it is not just the act of providing false information but also includes the failure to disclose information that one knows should be shared, particularly when the lack of disclosure can mislead another party in a way that benefits the fraudster. The element of dishonesty coupled with the intention to gain an advantage is central to the definition of fraud in this context. Understanding this requirement can help clarify why a mere failure to act or make a true representation does not fully encapsulate the legal definition of fraud; the intentionality and knowledge regarding the falsehood are key elements.