When has a crime been committed?

[McMurdoDon]

What is the name of your state? Minnesota

Where do you draw the line on the following: A plumber is doing repairs in the basement of an elderly person. The plumber sees an old painting and offers $5. It turns out the painting is a rare Rembrant, worth $1.5million.

Factors to consider or vary.. The plumber asked the owner how much it was and the owner said $5. The plumber said it was only worth $5 and the most he would pay was $5. The plumber knew nothing about art, but liked the painting. The plumber is an expert art collector and knew upfront it was worth in excess of $1m.

You can play with these from the one extreme of an unknowedgeable person buying something at a set price and later finding out its true value, to the other exteme of an expert, knowing its true value and deceiving the owner into selling the piece for virtually nothing.

Generally speaking, where do you draw the line? When is fraud committed?

 

[shortbus]

There's no way of saying in advance. Parties often disagree on the value of an item & take risks going into a deal. For example, every stock trade represents one person's view that it will go up, and the other's view it will go down. You can't sue someone because you guessed wrong.

That said, courts will not enforce contracts where one party's assent has been induced through their own mistake, or misrepresentation by the other party.

In your example, a court would probably say the old man made a mistake about what he thought he was selling. Then it doesn't really matter what the plumber knows or doesn't know, it's a voidable contract.