Contracts

In Rhode Island, what is 'constructive fraud'?

ABuilding a fraudulent structure on a property
BA breach of legal duty that causes harm, even without intent to deceive✓ Correct
CFraud committed during the construction phase of a home
DFiling a fraudulent deed with the Registry

Explanation

Constructive fraud occurs when a party in a fiduciary relationship takes unfair advantage of another, causing harm, even without intentional deception. An agent who profits at their client's expense without disclosure may be guilty of constructive fraud.

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