Legal Definitions - actual fraud

Actual fraud is a type of fraud where someone intentionally misrepresents the truth or hides important information to make someone else act in a way that harms them. This can be a crime or a civil wrong. Examples of actual fraud include:

• A person selling a car and lying about its condition to get a higher price
• A contractor taking money for a job and never doing the work
• A financial advisor lying about the risks of an investment to get a client to invest

These examples show how someone intentionally deceived another person to gain an advantage and cause harm. Actual fraud can have serious consequences and can result in legal action against the person who committed the fraud.