Delaware Business Litigation Report
Court Of Chancery Explains Promissory Fraud
Plaintiffs often try to allege fraud by claiming that the defendant made a promise that he did not intend to keep. As this decision points out, that mere allegation is not good enough to state a claim. Rather, the complaint must allege facts that support the allegation the promise was made all the while with the intent to not keep it. For example, if the promisor lacked the means to keep his promise or had no reasonable expectation of getting the means to do so, then it might be said he lied when he said what he could not deliver.
This decision also has an excellent analysis of the conspiracy theory of jurisdiction.