Constructive fraud

Constructive fraud

Constructive fraud is a legal fiction used in the law to describe a situation where a person or entity gained an unfair advantage over another by deceitful, or unfair, methods. Intent does not need to be shown[1] as in the case of actual fraud. Some unfair methods may include not telling customers about defects in a product[2].

The elements are[3]:

  1. a duty owing by the party to be charged to the complaining party due to their relationship[4];
  2. violation of that duty by the making of deceptive material misrepresentations of past or existing facts or remaining silent when a duty to speak exists;
  3. reliance thereon by the complaining party;
  4. injury to the complaining party as a proximate result thereof; and
  5. the gaining of an advantage by the party to be charged at the expense of the complaining party.


References

  1. ^ "Montana Code Annotated". http://data.opi.mt.gov/bills/mca/28/2/28-2-406.htm. Retrieved 2009-03-10. 
  2. ^ "Law.com Dictionary". http://dictionary.law.com/default2.Asp?selected=318&bold=. Retrieved 2009-03-10. 
  3. ^ Strong v. Jackson, 777 N.E. 2d 1141 (2002).
  4. ^ A fiduciary duty is one such duty Sees v Bank One, footnote 8, page 3



Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • constructive fraud — see fraud Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. constructive fraud …   Law dictionary

  • Constructive fraud — Fraud Fraud (fr[add]d), n. [F. fraude, L. fraus, fraudis; prob. akin to Skr. dh[=u]rv to injure, dhv[.r] to cause to fall, and E. dull.] 1. Deception deliberately practiced with a view to gaining an unlawful or unfair advantage; artifice by which …   The Collaborative International Dictionary of English

  • constructive fraud — Legal fraud as distinguished from actual fraud, being presumed from the relation of the parties to a transaction or from the circumstances under which it takes place, not necessarily a matter of conscious wrongdoing. 37 Am J2d Fraud § 4. In its… …   Ballentine's law dictionary

  • constructive fraud — noun comprises all acts or omissions or concealments involving breach of equitable or legal duty or trust or confidence • Syn: ↑legal fraud • Hypernyms: ↑fraud • Hyponyms: ↑fraud in law * * * noun : conduct that is based on acts, omissions, or… …   Useful english dictionary

  • fraud — n [Latin fraud fraus] 1 a: any act, expression, omission, or concealment calculated to deceive another to his or her disadvantage; specif: a misrepresentation or concealment with reference to some fact material to a transaction that is made with… …   Law dictionary

  • constructive — con·struc·tive /kən strək tiv/ adj: created by a legal fiction: as a: inferred by a judicial construction or interpretation b: not actual but implied by operation of the law made a constructive entry when he refused to take the opportunity for a… …   Law dictionary

  • Constructive treason — refers to the judicial extension of the statutory definition of the crime of treason. For example, the English Treason Act 1351 declares it to be treason When a Man doth compass or imagine the Death of our Lord the King. This was subsequently… …   Wikipedia

  • Fraud — (fr[add]d), n. [F. fraude, L. fraus, fraudis; prob. akin to Skr. dh[=u]rv to injure, dhv[.r] to cause to fall, and E. dull.] 1. Deception deliberately practiced with a view to gaining an unlawful or unfair advantage; artifice by which the right… …   The Collaborative International Dictionary of English

  • constructive — [kən struk′tiv] adj. [ML constructivus] 1. helping to construct; leading to improvements or advances; formative; positive [constructive criticism] 2. of construction or structure 3. inferred or implied by legal or judicial interpretation… …   English World dictionary

  • fraud — An intentional perversion of truth for the purpose of inducing another in reliance upon it to part with some valuable thing belonging to him or to surrender a legal right. A false representation of a matter of fact, whether by words or by conduct …   Black's law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”