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Simple English definitions for legal terms
civil fraud
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A quick definition of civil fraud:
Civil fraud is when someone intentionally lies or hides important information to trick someone else into doing something that harms them. It can result in a lawsuit and the person who committed the fraud may have to pay money as a penalty. It is different from criminal fraud, which can result in fines and imprisonment, and unintentional mistakes or misunderstandings.A more thorough explanation:
Definition: Civil fraud is a type of fraud that involves a knowing misrepresentation of the truth or concealment of a material fact to induce another person to act to their detriment. It is usually a tort, but in some cases, it may be a crime. Civil fraud can also refer to unconscionable dealing, which is the unfair use of power resulting in an unconscionable bargain.
- A company knowingly misrepresents the quality of its products to induce customers to buy them, causing the customers to suffer financial losses.
- An individual conceals material information about a property they are selling, causing the buyer to suffer financial losses.
- A landlord unfairly uses their power to force a tenant to sign an unconscionable lease agreement.
These examples illustrate civil fraud because they involve a knowing misrepresentation or concealment of material information that causes another person to suffer financial losses or enter into an unfair agreement.