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Constructive Fraud occurs when a party breaches a legal or equitable duty and that breach is deemed to be fraudulent by the law.
The elements of constructive fraud are:
- A relationship between the parties where one reposes a special confidence in another so that the latter, in equity and good conscience, is bound to act in good faith and with due regard to the interests of the one reposing the confidence;
- Breach of a duty that arises out of a that relationship;
- The breach is a kind the law declares fraudulent because of its tendency to deceive others or to violate confidence.