Constructive fraud is a
legal fiction
A legal fiction is a fact assumed or created by courts, which is then used in order to help reach a decision or to apply a legal rule. The concept is used almost exclusively in common law jurisdictions, particularly in England and Wales.
Deve ...
describing a situation where a person or entity gained an unfair advantage over another by deceitful or unfair methods.
Intent
Intentions are mental states in which the agent commits themselves to a course of action. Having the plan to visit the zoo tomorrow is an example of an intention. The action plan is the ''content'' of the intention while the commitment is the ''a ...
does not need to be shown
as in the case of actual
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
. Some unfair methods may include not telling customers about defects in a product.
The elements are:
* a duty owing by the party to be charged to the complaining party due to their relationship;
[A ]fiduciary
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for exampl ...
duty is one such dut
Sees v Bank One
footnote 8, page 3
* violation of that duty by the making of deceptive material misrepresentations of past or existing facts or remaining silent when a duty to speak exists;
* reliance thereon by the complaining party;
* injury to the complaining party as a proximate result thereof; and
* the gaining of an advantage by the party to be charged at the expense of the complaining party.
References
Legal terminology
Legal fictions
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