What Is Fraud in Common Law?

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What is fraud? This is what we are going to find out in this article. If we are going to focus on the definition by the criminal law, it is actually the deception that is made intentionally by the person. His or her goal could be to damage the person or to gain something from it. By certain definition according to the criminal law, we are going to find out the answer as to – what is fraud and how come it is potentially threatening to all of us. The meaning of fraud actually differs according to the legal jurisdiction. There are those who are involved in a hoax so that they can deceive another individual. However, they do not personally have the intention to damage the victim.

Fraud Defined by the Civil Law- Outright Deception or Misrepresentation?

In this context, let us find out what is fraud under civil proceedings. During the criminal prosecutions, it is possible that the defendant will file for its defense so that they can avoid civil liability or criminal liability. Did you know that fraud is also known as a defense for certain performance like breach of contract? Yes, this is true. It could be the equitable jurisdiction basis. While most of you may think that this is an evil practice, well you are not totally right. It is true that fraud is punishable by law however it is sometimes an accidental misrepresentation and not an outright deception.

Conditions When Fraud Becomes a Misrepresentation

As you have found out the answer for the question of “what is fraud” under the state law, it has actually undergone few changes for the centuries that pass. The court will still base fraud depending to the community standard. We cannot deny the fact that its definition has been complex because there are other factors that are involved. This is no longer just a simple case of deceiving someone else but there are also other conditions to the law. If it is merely a misrepresentation, one has to present a convincing and clear evidence to claim that the statement is true. Generally, there are elements of fraud under the Oregon law. It includes the following: falsity, representation, ignorance of truth, knowledge of the speaker regarding the falsity, intent when it was acted, ignorance of the hearer, the reliance of truth to the hearer.

Misleading Truths in Businesses

If we will really know deeply as to what is fraud, we will be faced with a lot of meaning as far as common law is concerned. It is imperative that we people should know our side when faced into this kind of situation. As a topic of fraud that occurs in banking, it could be the case where there are stolen credit cards or the accounting practices are misleading. This case can be determined through the insurance claim and then other identity factor. Since fraud is increasing each day, we have to take the necessary steps so that businesses and our personal relations should not put at risk because of it.