Legal Dictionary

fraus est celare fraudem

Litigation & Disputes / Corporate Fraud / Fraudulent Misrepresentation

It is fraud to conceal a fraud.

In Goman v. Salisbury 1 Vern 240, a person making an unconscionable bargain had deliberately avoided acquiring any knowledge which would have provided him with the knowledge that his dealings were less than honest on his part.

In the modern context, a person is said to have “closed his eyes” to the whether or not the transaction was an honourable one. Fraudulent representation and deceit include reckless conduct, whereby the defendant is not required to actually know their conduct is fraudulent. The test is that the person made the false statement was made recklessly, not caring whether it was true or false.


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Usage: The claimant was entitled to implicate the second defendant with the conduct of the first defendant and establish joint and several liability, as second defendant had concealed the fraud of the first defendant, fraus est celare fraudem.

Related Terms

fraudulent debtors; contracts; fraudulent misrepresentation; rescission; damages; account of profits; fiduciary relationship; joint and several liability; interim remedies; proprietary interest.


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