constructive fraud

{{Short description|Legal situation}}

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{{cite web

| title = Montana Code Annotated

| url=http://data.opi.mt.gov/bills/mca/28/2/28-2-406.htm

| accessdate = 2009-03-10 }} as in the case of actual fraud. Some unfair methods may include not telling customers about defects in a product.{{cite web

| title = Law.com Dictionary

| url=http://dictionary.law.com/default2.Asp?selected=318&bold=

| accessdate = 2009-03-10 }}

The elements are:{{cite court

|litigants=Strong v. Jackson

|vol=777

|reporter=N.E. 2d

|opinion=1141

|pinpoint=

|court=

|date=2002

|url=http://www.in.gov/judiciary/opinions/previous/archive/11040202.mpb.html}}

• a duty owing by the party to be charged to the complaining party due to their relationship;A fiduciary duty is one such duty [http://www.in.gov/judiciary/opinions/pdf/12200501rdr.pdf Sees v Bank One], footnote 8, page 3
• 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.