Digital Systems Corporation files a suit against Ethan, its former accountant, alleging constructive fraud. Digital Systems need not prove
A)misstatement of a material fact.
B)intent to deceive.
C)justifiable reliance.
D)an injury.

Question

Quizplus · Accepted Answer

In a case of constructive fraud, the plaintiff (Digital Systems Corporation, in this case) does not need to prove that the defendant (Ethan) had an intent to deceive. Constructive fraud can be found based on a breach of duty or an act that deceives another to their detriment, without the necessity of proving malicious intent.

Digital Systems Corporation Files a Suit Against Ethan, Its Former