Definitions Of Fraud
Fraud is a falsification, which is done intentionally that results in damages to a person, primarily financial setbacks. People consider lying as a part of fraud, but in actual legal terms lying is just one tiny component of fraud. You would quite often notice a salesman lying and hiding about his origin, and family history, but as long as he is honest about the product he is intending to sell, he may not be considered a fraud. In case the same sales person intentionally presents the product in a false manner causing financial losses to the customer, he then can be considered as a fraud.
Sometimes, there are number of fraud cases which result due to intricate monetary transactions done by professional criminals or even business professionals having criminal instinct. Let us take an example. Suppose a deceitful investment broker convinces his clients to purchase shares of a precious metal and then giving them authentic looking bonds, but in actual these are worthless bonds, then the clients can sue him for fraud.
One must be aware that a fraud is very difficult to prove in the court of law. Law pertaining to fraud cases is not similar in all states. Usually each court demands for same set of conditions, but the most difficult part is to prove intentional falsification. The foremost question arises is that whether the seller knew in advance that the product he was selling was defective or rubbish. The salesman can be considered fraud only if this is proved. There are instances where the seller sells products without possessing sufficient knowledge about it. In such case, instead of the seller, the manufacturing company would be considered as fraud.
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