Definition

Fraud is intentionally deceiving another as a way to interfere with that person’s body or property.

Discussion

Fraud violates self-ownership and, therefore, breaks the Legal Principle. Fraud is the second-listed form of aggressing.

In fact, fraud is quite similar to the first-listed form of aggressing, the initiation of nonconsensual physical force upon another including another’s property. The difference with fruad, however, is due to the missing element of “physical”.

The Legal Principle separates fraud as a distinct form of aggressing to convey the particular way in which the initiation of force takes place. It is not physical.

Force can be physical, that is direct, such as taking another’s money without consent. In the case of fraud, the force is indirect by using deception.

For instance, Sarah proposes to sell Frank a gold watch for $300.00. Frank agrees and pays Sarah the money. Sarah then gives Frank a small rock. No watch is exchanged. In this case Sarah has taken Frank’s money without consent. Frank consented to Sarah taking his money only if Sarah transferred to him a gold watch.

Fraud usually involves someone misrepresenting facts or concealing information to gain an unfair advantage leading to the depriving another of property.

Complex interpretive issues arise in determining precisely which acts fall within the boundaries of fraud. Just as common law has helped define such terms throughout history, case law will determine these boundaries over time.

Implementation

Version 1.2 of Ulex directs to the following:

• 2.4.6. unjust enrichment: the American Law Institute’s Restatement of the Law Third – Restitution and Unjust Enrichment
• 2.4.2 unfair competition: the American Law Institute’s Restatement of the Law Third – Unfair Competition.