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 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:
So glister'd the dire Snake and into fraud Led EVE our credulous Mother, to the Tree Of prohibition, root of all our woe; Which when she saw, thus to her guide she spake.
som cursed fraud Of Enemie hath beguil'd thee, yet unknown, And mee with thee hath ruind, for with thee Certain my resolution is to Die; How can I live without thee, how forgoe Thy sweet Converse and Love so dearly joyn'd, To live again in these wilde Woods forlorn?
What words have past thy Lips, ADAM severe, Imput'st thou that to my default, or will Of wandering, as thou call'st it, which who knows But might as ill have happ'nd thou being by, Or to thy self perhaps: hadst thou bin there, Or bere th' attempt, thou couldst not have discernd Fraud in the Serpent, speaking as he spake; No ground of enmitie between us known, Why hee should mean me ill, or seek to harme.
"A few minutes since," said the captain, pointing complacently to his own composition with the feather end of his pen, "I had the honor of suggesting a pious fraud on Mrs.
What do you think, my dear sir, of pious frauds in general?"
Wife, children, friends--in the clear, white light of his logic they are exposed as frauds and shams.
Fraud in healthcare industry has become a critical problem in recent time, with misuse of medical insurance systems being the prime concern.
Research by travel association ABTA recently revealed that [pounds sterling]7 million was lost by more than 5,000 victims last year to holiday booking fraud.
Denouncing the state's current ranking when it comes to consumer scams and insurance abuse, Florida Chief Financial Officer (CFO) Jimmy Patronis has announced a new initiative aimed at reducing fraud in the state.
There has been a significant increase in the number of financial fraud cases at 34 per cent compared to 26 per cent in 2016.