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LSDefine
Simple English definitions for legal terms
legal fraud
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A quick definition of legal fraud:
Legal fraud is when someone intentionally lies or hides important information to make someone else do something that harms them. It can be a crime or a civil wrong. Sometimes, it's called constructive fraud or fraud in equity. It's different from unintentional mistakes or misunderstandings.A more thorough explanation:
Legal 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 can be a tort or a crime, depending on the circumstances.
Examples of legal fraud include:
- A person knowingly lying about the condition of a car they are selling to someone, causing the buyer to pay more than the car is worth.
- A company hiding important information from investors to make their stock seem more valuable than it really is.
- A contractor taking money from a homeowner for a renovation project, but never completing the work.
These examples illustrate how legal fraud involves intentionally deceiving someone for personal gain, causing them harm in the process.