Collusion Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Collusion, written in plain English, along with examples of how it is used.
What is Collusion?
It is an arrangement between two people or organisations to conspire against a third party with the intention of commiting a fraud.It is an illegal act to obtain something out of a third party.It can de done by traders who create situation to increase the price of commodities,in divorce cases to obatin a divorce etc.
History and Meaning of Collusion
Collusion is an act that entails an agreement between two or more people, organizations or entities with the intention of deceiving or harming a third party. It usually involves conspiracy, fraud or deceit for personal gain by misleading or withholding relevant information. The term is often used to describe illegal acts including insider trading, price fixing, and bid-rigging.
Collusion can be difficult to prove because it is usually conducted in secrecy. However, it has been a part of human history since ancient times. The first known law prohibiting collusion dates back to ancient Rome, where it was illegal for public officials to manipulate pricing by cooperating with merchants.
Examples of Collusion
- Two competing supermarkets agree to raise the prices of bread simultaneously.
- A group of construction companies agrees to inflate their bidding prices for a government contract.
- A political campaign secretly works with foreign agents to spread false information about their opponent.
- A group of doctors conspire to prescribe unnecessary medical treatments to increase their profits.
- A group of stockbrokers agrees to trade on insider information.
Legal Terms Similar to Collusion
- Conspiracy: An illegal agreement between two or more people to commit a crime.
- Fraud: Deceitful acts conducted with the intention of gaining an unfair advantage.
- Misrepresentation: Making false statements, omissions or half-truths to deceive someone.
- Price fixing: An agreement between competitors to set prices for goods or services.
- Bid rigging: Collusion between bidders to improperly influence the tendering process.