fraud

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Related to Frauds: Accounting Frauds

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 classic literature ?
And everybody crowded up with the tears in their eyes, and most shook the hands off of them frauds, saying all the time:
But it warn't no use; he stormed right along, and said any man that pretended to be an Englishman and couldn't imitate the lingo no better than what he did was a fraud and a liar.
"Do you see any particular objection to practicing a pious fraud on Mrs.
"Let others- the young- yield afresh to that fraud, but we know life, our life is finished!"
But he found himself encompassed with guards and forced to remain silent while the Chief Circle in a few impassioned words made a final appeal to the Women, exclaiming that, if the Colour Bill passed, no marriage would henceforth be safe, no woman's honour secure; fraud, deception, hypocrisy would pervade every household; domestic bliss would share the fate of the Constitution and pass to speedy perdition.
He has abused your credulity and involved you all in an attempted fraud, for when all is said and done this claim is nothing else!"
This Jellia dared not tell, having been threatened with death by the witch if she confessed the fraud. But Glinda, sweet and fair though she was, understood magic better than any other person in the Land of Oz.
The Sun was sunk, and after him the Starr Of HESPERUS, whose Office is to bring Twilight upon the Earth, short Arbiter Twixt Day and Night, and now from end to end Nights Hemisphere had veild the Horizon round: When SATAN who late fled before the threats Of GABRIEL out of EDEN, now improv'd In meditated fraud and malice, bent On mans destruction, maugre what might hap Of heavier on himself, fearless return'd.
There is hardly a subject of litigation between individuals, which may not involve those ingredients of fraud, accident, trust, or hardship, which would render the matter an object of equitable rather than of legal jurisdiction, as the distinction is known and established in several of the States.
Supposing her confession to have been made, or supposing the woman whom she had personated to have discovered the means of exposing the fraud, what advantage, she now asked herself, would Miss Roseberry derive from Mercy Merrick's disgrace?
It is hoped that, after this confession, whoever shall compare this attempt with the original, if he shall find no proofs of fraud or partiality, will candidly overlook any failure of judgment.
Dead to her uncle, who had renounced her; dead to the servants of the house, who had failed to recognise her; dead to the persons in authority, who had transmitted her fortune to her husband and her aunt; dead to my mother and my sister, who believed me to be the dupe of an adventuress and the victim of a fraud; socially, morally, legally-- dead.