Define: Constructive Fraud

Constructive fraud is a legal concept that refers to actions or conduct that may not be intentionally deceitful but still results in unfair or unjust consequences. Unlike actual fraud, which involves intentional deceit or misrepresentation, constructive fraud arises from circumstances where a party breaches a duty owed to another, leading to harm or loss. This breach of duty may involve negligence, recklessness, or a failure to act in good faith. Constructive fraud can occur in various contexts, including contracts, business transactions, trusts, and fiduciary relationships. Courts may treat constructive fraud similarly to actual fraud, providing remedies to the aggrieved party to address the unfairness or injustice resulting from the breach of duty.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.