Constructive fraud

Constructive fraud is a legal fiction 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^[1] as in the case of actual fraud. Some unfair methods may include not telling customers about defects in a product.^[2]

The elements are:^[3]

• a duty owing by the party to be charged to the complaining party due to their relationship;^[4]
• 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.

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