How does Good Faith affect fraud?

Fraud requires knowing and willful conduct carried out with the intent to defraud someone. As such, good faith in one’s actions is a defense to the allegations.

When is Good Faith a Defense to Fraud?

The good faith defense is that the defendant acted in good faith and did not have the necessary intent to defraud anyone.

It does not matter that a person’s statement or belief is wrong, there is no action for fraud unless the intent is to deceive is present.

Further, an individual’s lack of due care in making a statement is not relevant in determining fraud.