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constructive fraud

constructive fraud

8.7
A breach of a duty that misleads another person without meaning to trick them
  • noun
  • /kənˈstrʌktɪv frɔd/
  • Formal
translation icon : fraude constructivo
  • The court ruled that the actions of the accountant constituted constructive fraud because he failed to disclose key information to his clients.

Examples

  • When the builder neglected to inform the homeowners about the faulty materials, it was deemed an instance of constructive fraud.

  • The judge explained that her decision was based on the principle of constructive fraud, as the defendant's lack of transparency had caused significant harm.

  • It's called constructive fraud.

    Blog text (13)

Synonyms

legal fraud
vsconstructive fraud
  • Formal
7.2

Dishonest acts that break a person’s duty or trust under the law

focuses on breaches that occur without actual intent to deceive
fraud in law
vsconstructive fraud
  • Formal
8.8

An act a court treats as dishonest by law because of the situation, even without bad intent

centers on breaches of duty that mislead without actual intent

Antonyms

365 1.0

Being truthful and fair in what you say and do

112 3.0

An honest, sincere intention not to deceive other people

Surface Forms

Morphology

constructive + fraud

This is a specialized legal term: 'fraud' is familiar as deceptive wrongdoing, but 'constructive' here uses a technical legal sense (meaning ‘treated as if caused or established by law’ or ‘imputed’) rather than the everyday sense. Because the legal meaning of 'constructive' is not the ordinary meaning a B1 learner would know, the overall sense of the phrase cannot be derived from the constituent words, making it unpredictable for learners.

Etymology

Constructive fraud uses constructive in the sense of 'built' and fraud as 'deceit'. Imagine someone who, by what they do or do not say, 'builds' a wrong picture that causes another person to make a bad choice — even if there was no wish to 'deceive', the law treats the result as fraud, so the phrase means being misleading without intent.