What is Fraud?

Fraud is the intentional misrepresentation of a material fact that is justifiably relied upon by someone to his or her injury.

What Type of Conduct Constitutes Fraud?

The false statement inducing the other party’s misunderstanding must regard a material fact about the prospective transaction. Fraud often involves intentional misrepresentations regarding ownership of property or ones financial status.

• Note: Fraud may be an intentional failure to disclose a material fact that induces another into action which results in her harm. This may be the case when a legal duty to disclose the material fact exists.
• Example: Lying about assets or liabilities in order to get credit or a loan is a common form of fraud.