fraud

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fraud,

in law, willful misrepresentation intended to deprive another of some right. The offense, generally only a torttort,
in law, the violation of some duty clearly set by law, not by a specific agreement between two parties, as in breach of contract. When such a duty is breached, the injured party has the right to institute suit for compensatory damages.
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, may also constitute the crime of false pretenses. Frauds are either actual or constructive. An actual fraud requires that the act be motivated by the desire to deceive another to his harm, while a constructive fraud is a presumption of overreaching conduct that arises when a profit is made from a relation of trust (see fiduciaryfiduciary
, in law, a person who is obliged to discharge faithfully a responsibility of trust toward another. Among the common fiduciary relationships are guardian to ward, parent to child, lawyer to client, corporate director to corporation, trustee to trust, and business
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). The courts have found it undesirable to make a rigid definition of the type of misrepresentation that amounts to actual fraud and have preferred to consider individually the factors in each case. The misrepresentation may be a positive lie, a failure to disclose information, or even a statement made in reckless disregard of possible inaccuracy. Actual fraud can never be the result of accident or negligencenegligence,
in law, especially tort law, the breach of an obligation (duty) to act with care, or the failure to act as a reasonable and prudent person would under similar circumstances.
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, because of the requirement that the act be intended to deceive. The question of commission may depend upon the competence and commercial knowledge of the alleged victim. Thus dealings with a minor, a lunatic, a feeble-minded person, a drunkard, or (in former times) a married woman are scrutinized more closely than dealings with an experienced businessman. A lawsuit based upon actual or constructive fraud must specify the fraudulent act, the plaintiff's reliance on it, and the loss suffered. The remedy granted to the plaintiff in most cases is either compensatory (and possibly punitive) damagesdamages,
money award that the judgment of a court requires the defendant in a suit to pay to the plaintiff as compensation for the loss or injury inflicted. Damages are the form of legal redress most commonly sought.
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 for the injury or cancellation of the contract or other agreement and the restoration of the parties to their former status. In a few states of the United States both damages and cancellation are available. In certain suits based upon a contract, fraud may be introduced as a defense.
References in periodicals archive ?
Also sentenced were Claire Hayes, of Mansfield, who admitted defrauding both colleges, Carolanne Ravenscroft, of Ewloe, Wales, who was found guilty of defrauding the colleges after a trial and Kieran England, of Liverpool, who was found guilty of conspiring to defraud both colleges after a trial.
Our weeping can also connect us to the stories of people we are defrauding, the stories of people we are making sick with our ever-expanding lifestyle.
There also is no automatic provision barring a person convicted of defrauding the city from getting a new city contract.
A jury found the securities firm guilty of defrauding Ronald Perelman, a prominent investor, in the course of the sale of his controlling interest in Coleman Co.
A former branch manager of Citibank was arrested Monday on suspicion of defrauding a customer about 850 million yen between 1997 and 2002, public prosecutors said.
The plaintiffs contended that Qu and PrediWave had knowingly engaged in actions aimed at defrauding New World of its investment.
A Van Nuys man pleaded guilty Wednesday to defrauding dozens of investors of at least $2.