What is the definition of fraud?

Answer 1

Generally, fraud means the use of deceit or trick to cause someone to act to his or her disadvantage. In legal terms, it is the misrepresentation or a material omission of fact which was false and known to be false made for the purpose of inducing the other party to rely upon it. Here is another easy way to remember what fraud is: "you lie, I rely." I recall hearing this in law school and it stuck.