Definition - What does Defraud mean?
Defraud is a legal term meaning to purposefully plan to mislead another person in order to gain financially from the deception, or to cause material damage to another. To defraud, a person may omit pertinent information or misrepresent the facts to another so that they achieve the desired action based on the information presented to the other person.
WorkplaceTesting explains Defraud
To defraud another person is regarded as a civil offense. Proving someone guilty of defrauding another may result in a legal contract being voided or compensation in the form of damages to be awarded to the wronged party. In order to prove that the plaintiff has been defrauded by the defendant, the plaintiff must show that either the defendant intentionally misrepresented or omitted a significant fact, or that they did so out of negligent disregard for the validity of the information. The plaintiff must show the court that the misrepresentation or omission was of significance in the decision making process that resulted in the damages.