What is constructive fraud in civil law?

Constructive fraud is a form of fraud that occurs in civil law when a person or party intentionally misleads another by not disclosing important information, or by actively providing false information. In civil law, constructive fraud can include things such as leaving out material information when making an agreement, providing false statements on a loan application, or providing false information on a warranty. In the state of Minnesota, constructive fraud is considered a tort, which is a civil wrong or harm that one party commits against another. Generally, in a civil lawsuit, a court must find proof that the harm done was done intentionally and not by accident. However, with constructive fraud, the court does not need to show that the party intended to harm or deceive the other. Constructive fraud does not require proof of a person’s intentions; rather, it looks at the action that was taken and whether important facts were left out, or incorrect information was provided. In Minnesota, the tort of constructive fraud can result in both punitive and compensatory damages. Punitive damages are those designed to punish the wrongdoer and deter future wrongdoing, while compensatory damages are meant to provide restitution to the aggrieved party. Constructive fraud is a serious offense, and it is important for Minnesota citizens to be aware of their rights and to take any action necessary if they are the victim of this form of deception.

Related FAQs

What is a hardship in civil law?
How does civil law differ from common law?
What is the difference between a contract and a tort?
What is a motion to set aside a judgment in civil law?
What is a stay in civil law?
What is a wrongful termination in civil law?
What is an arbitration award in civil law?
What is a plea agreement in civil law?
What is the difference between an injunction and an order in civil law?
What is a demurrer in civil law?

What is constructive fraud in civil law?

Related FAQs

Related Blog Posts