Fraud occurs when one party deceives another for financial gain. In North Carolina, courts are careful about how fraud claims are used. Judges generally disfavor attempts to frame what is essentially a breach of contract as a fraud case. In other words, if one side simply fails to live up to the terms of a contract, that alone will not rise to the level of fraud.
However, businesses should not assume that fraud claims are off the table. When it can be shown that a defendant acted with clear intent to deceive, the law provides a powerful remedy. Proving fraudulent intent can open the door to significant legal and financial consequences for the wrongdoer—sometimes including punitive damages that go beyond standard contract remedies.
For example, consider a situation where one party never intended to deliver on the promises written in the contract, but instead used the agreement as a tool to lure the other side into a costly trap. Unlike a simple failure to perform, this type of deliberate misrepresentation can form the basis of a strong fraud claim.
For business owners, the distinction is critical. A breach of contract claim may allow you to recover what you are owed, but a well-pleaded fraud claim can also hold a dishonest party fully accountable for the harm caused by deceptive conduct. Identifying fraud early and presenting it effectively can shift the balance of a case and strengthen your negotiating position.
If you believe that you have been cheated out of money you are rightfully owed or that you have otherwise been the victim of business fraud, we provide the following legal services:
– Bank fraud
– Financial services fraud
– Securities fraud
– Business fraud
– Wire fraud
– Customs fraud
– Consumer fraud
– Tax fraud
– Insurance fraud
– Health care fraud
– Embezzlement
At Roth Law Group, we place great importance on taking action to help your business prosper. Contact The Roth Law Group at (919) 410-8107 to talk with our knowledgeable Raleigh, N.C. commercial litigation attorneys about your needs.