What is the difference between civil fraud and contract fraud?
Civil fraud and contract fraud are two forms of fraud that can be found in Washington State. However, there is a distinct difference between the two. Civil fraud occurs when a person knowingly makes false representations of material facts in order to induce another person to act or to rely on those false representations. This could include providing false information about their finances or medical history, for example, in order to persuade another person to sign a contract. Contract fraud, on the other hand, takes place when one party knowingly commits a material breach of a contractual obligation and the other party relies on that breach to their detriment. This could include failing to deliver a product that was promised under the terms of a contract or engaging in fraudulent activity related to the terms of the agreement. In short, civil fraud is lying or omitting information to get someone else to enter into a contract, while contract fraud is breaking the terms of the contract. Both civil fraud and contract fraud are serious offenses in Washington State that can result in criminal and civil penalties depending on the severity of the offense.
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