Constructive fraud (in contract law) (Ro.: neîndeplinirea obligaţiei de informare, eroare, Fr. : fraude par interprétation, n.f., Gr.: πλάνη ως προς τις ιδιότητες, Cz.: právní podvod) (See also: actual fraud, unfair terms) = an unintentional deception, which usually consists of obtaining a legal, but unacknowledged advantage, by using unfair means, in order to induce a misrepresentation or a lack of information concerning the agreement. 

In constructive fraud, one party takes advantage of the ignorance or of the poor condition of the other party. In terms of its result, the constructive fraud has the same consequences as the actual fraud. 


Useful links

Legislation - Civil Code of California, Art. 1572-1573, 1872, USA [English] - Oklahoma statutes, Chapter 15, Article 59, USA [English] - Georgia Code, Title 23, 23-2-51, 2010, USA [English]

Case Law - Silver v. Slusher, Supreme Court of Oklahoma, USA, 1988 - Bras v. First Bank & Trust Co., USA, 1985 - Dawson v. Tindell, Supreme Court of Oklahoma, USA, 1987 

Online Publications - Monhart, J. A., 1991, A Primer on the Developing Doctrine of Constructive Fraud in Montana, Montana, Montana Law Review - Stimmel, Stimmel & Smith, 2003, Constructive Fraud and Other Legal 'Constructs', San Francisco, Stimmel, Stimmel & Smith - Tozer, M. B., 2013, Fraud and misrepresentation law in California, California, Christian Attorney


Bigelow, M. M., 1877, The Law of Fraud, Washington DC, Beard Books

Bisceglie, K. C., Ross, O. H., Fleming, T. J., 2012, New York commercial litigation guide, New Providence, LexisNexis

Gao, X., 2003, The Fraud Rule in the Law of Letters of Credit: a comparative study, Dordrecht, Kluwer Law International

Joseph, R. L., Michael, F. F., Arthur E. R., DeBole, P., 2007, 2 Regulation: Business Law & Professional responsibility, Lambers CPA Review

Poser, N. S., Fanto, J. A., 2007, Broker-dealer law and regulation, Austin, Wolters Kluwer Law & Business 


By Ioana Bărăian