constructive fraud > define

noun

• Comprises all acts or omissions or concealments involving breach of equitable or legal duty or trust or confidence.
  • synonyms: legal fraud

Breach of a legal or equitable duty that the law declares fraudulent because of its tendency to deceive others, despite no showing of dishonesty or intent to deceive. A broker may be charged with' constructive fraud' for failing to disclose a known material fact when the broker had a duty to speak—for example, if a listing broker failed to disclose a known major foundation problem not readily observable upon an ordinary inspection. (See material fact).