Fraud Legal Definition:

Deceitful or deceptive conduct designed to manipulate another person to give something of value.

Related Terms: Racketeering , Fraudulent Conveyance , Equitable Fraud , Undue Influence , Equity

In Jewish Center of Sussex City, Justice Clifford of the Supreme Court of New Jersey noted:

"Every fraud in its most general and fundamental conception consists of the obtaining of an undue advantage by means of some act or omission that is unconscientious or a violation of good faith. Depending on the remedy sought, an action for fraud may be either legal or equitable in nature.

Deceitful conduct designed to manipulate another person to give something of value by (1) lying, (2) by repeating something that is or ought to have been known by the fraudulent party as false or suspect or (3) by concealing a fact from the other party which may have saved that party from being cheated.

The existence of fraud will usually cause a court to void a contract and can give rise to criminal liability.

Canada's Criminal Code (¶380) defines the crime of fraud as:

"Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service ... (or) ... with intent to defraud, affects the public market price of stocks, shares, merchandise or anything that is offered for sale to the public."

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