JD Next Practice Exam

Remove ads, get exclusive features. Starting from $7.99

Question: 1 / 400

What constitutes 'fraud' in legal terms?

A mistake made during contract signing

Unintentional harm caused to another party

An intentional deception made for personal gain

In legal terms, fraud is defined as an intentional deception made for personal gain. This involves knowingly providing false information or omitting crucial facts with the intent to mislead another party, typically to gain an advantage or to induce them to enter into a contract or agreement. For example, if a seller knowingly misrepresents the condition of a product to secure a sale, that would constitute fraud.

This understanding of fraud emphasizes the necessity of intention; the deceiver must have a conscious desire to mislead and benefit from the deception. In contrast, a mistake made during contract signing, unintentional harm, or an oversight in financial reporting does not involve the requisite intention to deceive, thereby falling outside the legal definition of fraud. These scenarios might involve negligence or errors, but they lack the element of deliberate dishonesty that fraud requires.

JD Next Practice Exam

Get the latest from Examzify