Constructive Fraud

Fraud inferred by law, as distinguished from positive, actual or intentional fraud: fraud in law, as distinguished from fraud in fact.

2 Kent's Com. 615, et seq.

See Fraud. By constructive frauds are meant such contracts or acts, as, though not originating in any actual evil design or contrivance to perpetrate a positive fraud or injury upon other persons, are yet, by their tendency to deceive or mislead other persons, or to violate public or private confidence, or to impair or injure the public interests, deemed equally reprehensible with positive fraud; and therefore are prohibited by law, as within the same reason and mischief as contracts and acts done mala animo.

1 Story's Eq. Jurisp. § 258.