FRAUD, in law, all deceitful practices in defrauding or endeavoring to defraud another of his known right, by means of some artful de vice, contrary to the plain rules of common hon esty. It is condemned by the common law, and punishable according to the offense. All frauds and deceits for which there is no remedy by the ordinary course of law are properly cog nizable in equity. Where a fraud can be clearly established, courts of law exercise a concurrent jurisdiction with courts of equity. Wherever fraud or surprise can be imputed to, or collected from, the circumstances, equity will interpose and grant relief against it. Where a person is party to a fraud, all that followed by reason of that fraud shall be said to be done by him. A party prejudiced by a fraud may file a bill in equity for a discovery of all its circumstances. Mere inadequacy of price alone is not a ground for a court to annul an agreement; but if there be such inadequacy as to show that the person did not understand the bargain he made, or was so oppressed that he was glad to make it, knowing its inadequacy, it will show a com mand over him which may amount to a fraud. If a person be fraudulently prevented from do ing an act, equity will consider the act as done; and equity also relieves against bargains made under misconception of rights. In treaties, con
cealment of a material fact by one of the par ties, in order to keep the other in ignorance, whereby to profit, is a gross fraud, and the con tract will be set aside in equity. Constructive or legal fraud is applied to such acts or con tracts as, though not originating in an actual evil design or contrivance to perpetrate a posi tive fraud or injury upon other persons, yet by their tendency to deceive or mislead other per sons, or to violate public or private confidence, or to impair or injure the public interest, are deemed equally reprehensible with actual fraud, and are prohibited by law, as within the same reason and mischief as acts and contracts done nia/o anima. Gross criminal frauds are punish able by way of indictment or information. Frauds are not indictable at common law unless they be such as affect the public — as vending unwholesome provisions, or using false weights or measures; or by the way of conspiracy; or unless they affect the crown or the adminis tration of justice. (See FRAUD, STATUTE OP; FRAUDULENT CON VEYANCES). Consult Bigelow, 'The Law of Fraud on its Civil Side' (Boston 1888); Browne, 'Construction of the Statute of Frauds' (1895) ; Kerr, 'Treatise on the Law of Fraud and Mistake' (4th ed., London 1910).