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To recover on an action for fraud, the party must prove that:

1. a material misrepresentation was made;
2. it was false;
3. when the speaker made the representation he knew it was false or made it recklessly without any knowledge of the truth and as a positive assertion;
4. the speaker made it with the intention that it should be acted upon by the party;
5. the party acted in reliance upon it;
6. the party thereby suffered injury.

The Texas Supreme Court has held that this framework for fraud includes the Restatement (Second) of Torts section 531’s reason-to-expect standard. Holding that our fraud jurisprudence has traditionally focused not on whether the misrepresentation is directly transmitted to a person alleged to be in privity with fraudfeasor, but on whether the misrepresentation was intended to reach a third person and induce reliance.

Under section 531, a person who makes a misrepresentation is liable to the person or class of persons the maker intends or “has reason to expect” will act in reliance upon the misrepresentation.Thus, although a misrepresentation need not be directly communicated by the speaker to the relying party, a misrepresentation must reach the relying party and influence his conduct.