Constructive fraud is a
legal fiction
A legal fiction is a construct used in the law where a thing is taken to be true, which is not in fact true, in order to achieve an outcome. Legal fictions can be employed by the courts or found in legislation.
Legal fictions are different from ...
describing a situation where a person or entity gained an unfair advantage over another by deceitful or unfair methods.
Intent does not need to be shown
as in the case of actual
fraud
In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...
. 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 (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, ...
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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