Fraud vs. Lying: What's the Legal Difference?
"Fraud" and "liar" are both ugly names, but only one will land you on the defense side of a civil lawsuit.
At some point, telling lies goes from being a poor decision to a violation of the law. But there are lots of circumstances in which it's not a legal problem, just a personal one. Knowing when lying becomes fraud is important, if only so you can avoid crossing the line.
It's not a complicated rule to figure out, but that doesn't make it easy to apply. Let's start by breaking down the definition of "fraud."
A fraud is an intentionally false representation made with the intent to misleadthe listener, and that the listener relied on "to her detriment."
The first part means that fraud must involve an intentional lie. If you truly believe you're telling the truth and end up being wrong, that doesn't qualify.
At some point, telling lies goes from being a poor decision to a violation of the law. But there are lots of circumstances in which it's not a legal problem, just a personal one. Knowing when lying becomes fraud is important, if only so you can avoid crossing the line.
It's not a complicated rule to figure out, but that doesn't make it easy to apply. Let's start by breaking down the definition of "fraud."
A fraud is an intentionally false representation made with the intent to misleadthe listener, and that the listener relied on "to her detriment."
The first part means that fraud must involve an intentional lie. If you truly believe you're telling the truth and end up being wrong, that doesn't qualify.
