Legal Dictionary
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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