What is constructive fraud in civil law?

Constructive fraud is a legal concept that manifests itself in civil law, including in the state of Kansas. Constructive fraud occurs when an individual or entity misleads another person or company through a course of action or lack thereof. Constructive fraud does not necessarily mean that the person intended to deceive or cheat the other, rather that they were commercially unsound and negligent in their actions or inactions. Actions which could constitute constructive fraud include a party failing to disclose important information, making false statements, or deliberately leading a person to believe something which is not accurate. In the state of Kansas, any party in an agreement must exercise fair dealing and act in a way that other competent individuals would act in similar circumstances. If a person fails to do this, they may be found guilty of constructive fraud. Constructive fraud may result in civil law suits which can be costly for the accused, resulting in compensation for the wronged party, and sometimes punitive damages, meaning additional payments to the victim for their suffering. However, cases of constructive fraud are difficult to prove as the accused may have simply made an honest mistake, or failed to fully understand the implications of their actions.

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What is constructive fraud in civil law?

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