Extrinsic Fraud Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Extrinsic Fraud, written in plain English, along with examples of how it is used.

What is Extrinsic Fraud?

n. Acts that are fraudulent and keep a person from receiving the necessary information about their rights that are needed to enforce a contract of obtain the evidence for a lawsuit’s defense. This may include the destruction of evidence or misleading an ignorant person about their right to use. Intrinsic fraud is fraud that is the subject of a lawsuit.

History and Meaning of Extrinsic Fraud

Extrinsic fraud is a legal term that is used to describe fraudulent acts that result in a person not being able to receive the necessary information about their rights that are needed to enforce a contract or obtain evidence in a lawsuit defense. It can also involve intentionally misleading an ignorant person about their right to sue or their legal rights. Extrinsic fraud is seen as a means to deny a person justice.

Extrinsic fraud is often contrasted with intrinsic fraud, which is fraudulent conduct that is directly related to the subject matter of the lawsuit in question. Unlike intrinsic fraud, extrinsic fraud often happens before or after the lawsuit, and it involves misleading a party before they have a chance to present their case in court.

Examples of Extrinsic Fraud

  1. A defendant intentionally destroys evidence that would be harmful to their case before the trial. This would be an example of extrinsic fraud because it prevented the other side from obtaining information that is necessary for their case.

  2. A company misleads customers about their rights to challenge the terms of a contract, tricking them into signing contracts that are unfair or deceptive. This would also be an example of extrinsic fraud because the company is preventing customers from accessing their legal rights.

  3. A lawyer lies to their client about their right to use certain evidence in a case or misleads them about the procedural rules of the court, resulting in the client losing the case. This is also extrinsic fraud because it prevents the client from accessing justice and the right to fair trial.

Legal Terms Similar to Extrinsic Fraud

  1. Intrinsic Fraud: Fraudulent conduct that is related to the subject matter of the case.
  2. Material Misrepresentation: A false statement that is used to deceive a party and influence their decision.
  3. Duress: Unlawful pressure that is placed on a person to force them to agree to a specific action, like signing a contract or testifying in court.
  4. Undue Influence: Influence that is used to convince a person to act against their own best interests and in favor of another party.
  5. Rescission: The cancellation of a contract due to fraud or other misrepresentation.