DocketX

DocketX / Glossary / fraud

Fraud

Fraud is when someone intentionally lies or hides important facts to trick you into giving up money or property, and you suffer a loss because you reasonably relied on that lie.

What it actually is

In a court case, fraud is a legal claim that requires proof that the defendant made a false statement of fact, knew it was false (or recklessly disregarded the truth), intended you to rely on it, and you actually relied on it to your detriment. It can appear as a cause of action in a lawsuit or as a defense to a contract, and the evidence must be clear and convincing, not just a preponderance.

Why it matters in your case

If you are accused of fraud, the other side must prove each element with strong evidence, and you may face serious consequences like having to pay back money plus extra penalties. If you are the victim, you can sue to recover your losses, but you must act promptly because delays can hurt your case.

The common misunderstanding

Many people think any lie or broken promise is fraud, but fraud requires a deliberate false statement about a past or present fact—not just a future promise that later fails. Also, mere negligence or a mistake is not fraud; there must be an intent to deceive.

Get the actual rule

Definitions are orientation; rules are authority

This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.

Related

Terms that travel with this one

General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.