{"id":6832,"date":"2017-11-06T02:40:26","date_gmt":"2017-11-06T02:40:26","guid":{"rendered":"https:\/\/reunitethestates.org\/?page_id=6832"},"modified":"2018-02-28T03:42:56","modified_gmt":"2018-02-28T03:42:56","slug":"fraud-related-legal-term-definitions","status":"publish","type":"page","link":"https:\/\/reunitethestates.org\/?page_id=6832","title":{"rendered":"Fraud – concealing a fact or misleading, to induce someone(s) to part with property or surrender a legal right"},"content":{"rendered":"

\u00a0\u00a0\u00a0\u00a0 This page is continued from Criminal Law Self-Help Walkthrough<\/a> >>>> Types of Crimes and Corresponding Laws<\/a>:
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fraud<\/span>:<\/span><\/strong>
\n n<\/em>. (14c.)<\/span><\/p>\n

1. Deceit, deception, artifice, or trickery operating prejudicially on the rights of another, and so intended, by inducing him to part with property or surrender some legal right.\u00a0 23 Am J2d Fraud \u00a7 2<\/span>. <\/span><\/strong><\/span><\/p>\n

Anything calculated to deceive another to his prejudice and accomplishing the purpose, whether it be an act, a word, silence, the suppression of the truth, or other device contrary to the plain rules of common honesty.<\/span> 23 Am J 2d Fraud \u00a7 2<\/span>. <\/strong><\/span><\/p>\n

An affirmation of a fact rather than a promise or statement of intent to do something in the future.<\/span> Miller v Sutliff<\/em>, 241 I11 521, 89 NE 651<\/span>.<\/span><\/strong><\/span><\/p>\n

For the purpose of the exception to discharge in bankruptcy of debts incurred by officers and fiduciaries through \u201cfraud\u201d: \u2014 positive fraud, fraud in fact, involving moral turpitude or intentional wrong.<\/span> 9 Am J2d Bankr \u00a7 801<\/span>. <\/strong><\/span><\/p>\n

As a ground for annulment of a marriage: \u2014 concealment or deception affecting the free consent of the injured party, involving such matters as identity, birth, rank, family, fortune, health, character, morality, habits, temper, reputation, etc. 35 Am J1st Mar \u00a7 90<\/span>. <\/strong>[1]<\/span><\/p>\n

1. Deceit, deception, or trickery that is intended to induce, and does induce another to part with anything of value or surrender some legal right.<\/strong> [2]<\/span><\/p>\n

1. A knowing misrepresentation or knowing concealment of a material fact made\u00a0<\/strong><\/span>to induce another to act to his or her detriment.\u00a0 Fraud is usually a<\/span> tort<\/a>, but in some cases\u00a0<\/span><\/strong>(especially when the conduct is willful) may be a crime.\u00a0<\/strong>\u2014 aka<\/span> intentional fraud<\/strong><\/em><\/span>. [3]<\/span><\/span><\/p>\n

\u00a0 \u00a0 \u00a0Excerpt from John Willard’s<\/span> A Treatise on Equity Jurisprudence<\/em><\/a>\u00a0(1879):<\/span><\/strong><\/span><\/p>\n

\u00a0 \u00a0 \u00a0\u201c<\/span>Fraud has been defined to be any kind of artifice by which\u00a0<\/span><\/strong><\/span>another is deceived. Hence, all surprise, trick, cunning,\u00a0<\/strong><\/span>dissembling, & other unfair way that is used to cheat any one, is\u00a0<\/strong><\/span>to be considered as fraud.<\/span>\u201d <\/strong>[4]<\/span><\/p>\n

fraud<\/span>:<\/span><\/strong>
\n (additional definitions)<\/span><\/em><\/p>\n

2. A reckless misrepresentation made without justified belief in its truth to induce another\u00a0<\/strong><\/span>person to act. <\/strong><\/span><\/span><\/p>\n

3. A<\/span> tort<\/a> arising from a knowing or reckless misrepresentation or\u00a0<\/span><\/strong><\/span>concealment of a material fact made to induce another to act to his or her detriment.<\/strong><\/span>
\n Additional elements in a claim for fraud may include reasonable reliance on the\u00a0<\/strong><\/span>misrepresentation and damages resulting from this reliance. <\/strong><\/span><\/span><\/p>\n

4. Unconscionable dealing;<\/strong><\/span> especially, in contract law, the unfair use of power arising out of the parties’ relative<\/strong><\/span><\/span>
\npositions & resulting in an unconscionable bargain.<\/strong> \u2014<\/span> fraudulent<\/strong><\/em><\/span>, adj<\/em>. [3]
\n<\/span><\/span><\/p>\n

\u00a0 \u00a0 \u00a0Except from William R. Anson,<\/span> Principles of the Law of Contract<\/em><\/a> 263 (Arthur L. Corbin ed., 3d Am. ed. 1919):<\/span><\/strong><\/span><\/p>\n

\u00a0 \u00a0 \u00a0\u201cThe use of the term fraud has been wider & less precise in\u00a0<\/span><\/strong><\/span>the chancery than in the common-law courts. This followed\u00a0<\/span>necessarily from the remedies which they respectively\u00a0<\/span>administered.\u00a0 Common law gave damages for a wrong, & was\u00a0<\/span>compelled to define with care the wrong which furnished a cause\u00a0<\/span>of action. Equity refused specific performance of a contract, or\u00a0<\/span>set aside a transaction, or gave compensation where one party\u00a0<\/span>had acted unfairly by the other. Thus ‘fraud’ as common law is a\u00a0<\/span><\/strong><\/span>false statement… : fraud in equity has often been used as meaning\u00a0<\/span>unconscientious dealing \u2014 ‘although, I think, unfortunately’, a\u00a0<\/span><\/span>great equity lawyer has said.<\/span>\u201d\u00a0<\/span><\/strong>[5]<\/span><\/p>\n

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Note:<\/span> Fraud cases often involve unjust enrichment<\/span>, and sometimes <\/em>are cases of conspiracy<\/span>.:<\/span><\/strong><\/p>\n

unjust enrichment<\/span><\/a> – an unlawful, unjustifiable retention of property<\/a>, without consent from the transferor(s), for which the beneficiary<\/a> must make restitution<\/a> or recompense<\/a>.<\/span><\/strong><\/span><\/p>\n

conspiracy<\/a><\/span> – an agreement by two or more persons to commit an unlawful act, coupled with an intent\u00a0to achieve the agreement’s objective, including any action or conduct that furthers the\u00a0agreement.\u00a0\u2014 <\/span><\/strong>aka criminal conspiracy<\/strong><\/span>.<\/em><\/span><\/span><\/p>\n

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Relative Terms:<\/span><\/strong><\/span><\/p>\n

defraud<\/span> –\u00a0<\/span><\/strong>vb<\/em>. (14c.) To cause injury or loss to (a person or organization) by deceit; to trick (a person\u00a0or organization) in order to get money.<\/strong><\/span><\/span><\/p>\n

badges of fraud<\/span><\/a> – suspicious circumstances that indicate the possibility of fraud.<\/span><\/span><\/strong><\/p>\n

fraudfeasor <\/span>–<\/span><\/strong>. (1890) Someone who has committed fraud.<\/strong> \u2014 aka<\/span> defrauder<\/strong><\/em><\/span>. See FEASOR.<\/span><\/span><\/p>\n

fraudulent <\/span>– That which is done with intent to defraud. Luttrell v State<\/em>, 85 Tenn 232<\/span>.<\/strong> [1]
\n<\/strong><\/span><\/p>\n

1. That which is done with intent to defraud. 2. Deceitful; dishonest.<\/strong> [2]<\/span><\/p>\n

fraudulent act<\/span> –<\/strong> (17c) 1. Conduct involving bad faith, dishonesty, a lack of integrity, or moral turpitude. 2. Conduct satisfying the elements of a claim for actual or constructive fraud.<\/strong>\u2014 aka dishonest act<\/strong><\/em><\/span>; fraudulent or dishonest act<\/span><\/strong><\/em>. [3]<\/span><\/p>\n

statute of frauds<\/span><\/strong><\/a> – a statute (based on the English Statute of Frauds) designed to prevent fraud and perjury by requiring certain contracts to be in writing and signed by the party to be charged.<\/strong>
\n<\/span><\/p>\n

Types of Fraud<\/span>
\nby Category:<\/span><\/strong><\/span><\/p>\n

actual fraud<\/strong><\/span><\/a> – a<\/strong> concealment or false representation<\/a> through an intentional or reckless statement or conduct that injures another who relies on it in acting.<\/strong> \u2014 aka fraud in fact<\/strong><\/em><\/span>; positive fraud<\/strong><\/em><\/span>; moral fraud<\/strong><\/em><\/span>.<\/span><\/p>\n