Legal Definitions - civil fraud

Definition: Civil fraud is a type of fraud that involves a knowing misrepresentation of the truth or concealment of a material fact to induce another person to act to their detriment. It is usually a tort, but in some cases, it may be a crime. Civil fraud can also refer to unconscionable dealing, which is the unfair use of power resulting in an unconscionable bargain.

• A company knowingly misrepresents the quality of its products to induce customers to buy them, causing the customers to suffer financial losses.
• An individual conceals material information about a property they are selling, causing the buyer to suffer financial losses.
• A landlord unfairly uses their power to force a tenant to sign an unconscionable lease agreement.

These examples illustrate civil fraud because they involve a knowing misrepresentation or concealment of material information that causes another person to suffer financial losses or enter into an unfair agreement.