The principle is to be applied to the given facts and to choose the most appropriate option
Principle: A person is said to do a thing fraudulently, if he does that thing with intent to defraud, but not otherwise.
Facts: 'A' occasionally hands over his ATM card to 'B' to withdraw money for 'A'. On one occasion 'B' without the knowledge of 'A', uses 'A's ATM card to find out the balance in 'A's account, but does not withdraw any money.
Options
'B' has not committed the act fraudulently.
'B' has committed the act fraudulently
'B' has committed misappropriation
'B' has committed breach of faith
Solution
'B' has not committed the act fraudulently.
Explanation:
For fraud, it is necessary that a person intentionally makes a false statement to deceive another party and thereby induce him to enter into a contract. If the intention to deceive the party is absent, there is no fraud.
'B' does not have any intention of withdrawing money from the account of 'A' without the consent of 'A' and no withdrawal has been carried out by 'B' who only checks the balance in the account. (Derry v Peek (1889) LR 14 App Cas 337, UKHL 1)
