Fraud is a false representation of a past or existing fact which is made to induce action on someone's part. If, in fact, a person reasonably relies upon this false representation, and that person is damaged by the fraud, than he or she may sue to recover damages. Should the representation have been made with the knowledge that it was false, then punitive damages may be recovered. Fraud may also be involved when a person promises to do something in the future and does not follow through. To show fraud in this type of situation, it would have to be shown that the person never intended to do the act that was promised. The most common contract is when two parties promise to do something. It is a contract because each promise is based on the other's promise to pay or perform a service. Except for common day-to-day occurrences, it is always a good idea to have your contract in writing. Should a contract be broken, and you are successful in court, the law allows for the recovery of attorney's fees only if you provide for this in the contract or an applicable statute allows it. For more information about breach of contract, please consult an attorney.