By failing to disclose (Fraud - Core principles of criminal liability)

Question 1

Under Section 3 of the Fraud Act, when is a person guilty of fraud by failing to disclose information?

Answer 1

When they dishonestly fail to disclose information they are under a legal duty to disclose, intending to make a gain or cause or risk a loss.

Question 2

Does a person need to deceive someone to be guilty of fraud by failing to disclose?

Answer 2

No, deception is not a required element of this offence.

Question 3

Is actual gain or loss necessary to establish fraud by failing to disclose?

Answer 3

No, it is enough that the person intended to gain or cause loss or expose another to risk of loss.

Question 4

What is the key difference between fraud by failing to disclose and other types of fraud?

Answer 4

It focuses on a breach of a legal duty to disclose information, rather than on false representations or abuse of position.

Question 5

Give an example of when a person might have a legal duty to disclose information.

Answer 5

When applying for insurance, individuals are legally required to disclose relevant facts that could affect the insurer’s decision.

Question 6

What mental element must be present for someone to be guilty under Section 3?

Answer 6

The person must act dishonestly and intend to gain or cause loss through their omission.

Question 7

Does forgetting to disclose information automatically amount to this offence?

Answer 7

No, the failure must be dishonest and tied to an intention to benefit or cause loss.

Question 8

In legal terms, how is dishonesty judged in fraud by failing to disclose?

Answer 8

By applying the objective standard—whether the conduct is dishonest by the standards of ordinary decent people, considering what the person knew at the time.