See F. Ehrle, "Die Spiritualen, ihr Verhaeltnis zum Franziskanerorden
und zu den Fraticellen" and "Zur Vorgeschichte des Concils von
Vienne," in _Archiv fuer Literatur- und Kirchengeschichte des
Mittelalters_, vols. i., ii., iii.; Wetzer and Welte,
_Kirchenlexikon_, s.v. "Fraticellen"; H. C. Lea, _History of the
Inquisition of the Middle Ages_, iii. 129-180 (London, 1888).
(P. A.)
FRAUD (Lat. _fraus_, deceit), in its widest sense, a term which has
never been exhaustively defined by an English court of law, and for
legal purposes probably cannot usefully be defined. But as denoting a
cause of action for which damages can be recovered in civil proceedings
it now has a clear and settled meaning. In actions in which damages are
claimed for fraud, the difficulties and obscurities which commonly arise
are due rather to the complexity of modern commerce and the ingenuity of
modern swindlers than to any uncertainty or technicality in the modern
law. To succeed in such an action, the person aggrieved must first prove
a representation of fact, made either by words, by writing or by
conduct, which is in fact untrue. Mere concealment is not actionable
unless it amounts not only to _suppressio veri_, but to _suggestio
falsi_. An expression of opinion or of intention is not enough, unless
it can be shown that the opinion was not really held, or that the
intention was not really entertained, in which case it must be borne in
mind, to use the phrase of Lord Bowen, that the state of a man's mind is
as much a matter of fact as the state of his digestion. Next, it must be
proved that the representation was made without any honest belief in its
truth, that is, either with actual knowledge of its falsity or with a
reckless disregard whether it is true or false. It was finally
established, after much controversy, in the case of _Derry_ v. _Peek_ in
1889, that a merely negligent misstatement is not actionable. Further,
the person aggrieved must prove that the offender made the
representation with the intention that he should act on it, though not
necessarily directly to him, and that he did in fact act in reliance on
it. Lastly, the complainant must prove that, as the direct consequence,
he has suffered actual damage capable of pecuniary measurement.
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