1: Dishonesty (S2): Ghost test applies:
1) Was what D did dishonest by the standards of ordinary, reasonable and honest people?
2) Did D know what he was doing was dishonest?
If Yes, D = dishonest.
2: D must know his representation is untrue or misleading or that it might be.
- more demanding that belief/suspicion.
If D argues they didn't know the representation might be false, in circumstances where it was obvious that they would have, the test is satisfied. Although, they would still be liable under Ghosh test.
3: Intent to cause gain/make a loss
There is a casual link between the false representation and the intention of gaining/causing loss.
R v Rai (2000) - D's mum got a grant to install a bathroom, mum died but D did not tell the authority until after work was completed. Continuing representation that his mum was still alive.
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