Fraud - one of the most powerful yet misunderstood legal concepts around

Fraud is simply when a party makes a misrepresentation of fact to someone else and that person relies upon it to their detriment.

Now, there are a few provisos within that simplified definition, the misrepresentation must be material; that is to say, it can't be the color of your tie if you are selling a person a car. Plus, the person making the misrepresentation has to have knowledge of its falseness that can't actually think the statement is true. Also, the person making the misrepresentation must intend for another person to rely upon it and that other person must reasonably rely upon it. Finally, the person who relied upon the misrepresentation must suffer damage. All of this must be proven by clear and convincing evidence.

Now, that may all sound like a mouthful but the concept is so simple yet so powerful. Fraud pops up in myriad settings including fraud in the inducement when you enter into a contract based upon fraudulent statements in the negotiations stage. There is also consumer fraud when salespeople make fraudulent statements or even omit to relate certain material facts regarding a product or service which can amount to consumer fraud. This type of fraud carries stiff penalties, treble your damages an an award of attorney's fees an costs of suit if you prevail. Even within consumer fraud there can be fraud per se with no intent needed when; e.g., a home improvement contractor violates a regulation aimed at standardizing their dealings with the public. In this special case, a contractor may commit consumer fraud by merely forgetting to put a start date and/or an end date in the contract they provide to you!

So, if and when you are dealing with people don't just think you can lie about things and get away with it because you actually might be defrauding someone to boot! If you have any questions, contact an attorney and get a professional opinion.