What is an act by one party intended to deceive another party called?

Prepare for the Metro Brokers Exam with flashcards and multiple choice questions. Each question is accompanied by hints and explanations. Get ready for your certification!

An act by one party intended to deceive another party is called fraud because it involves misrepresentation or deceit that is typically intended to gain something of value, such as money or property, at the expense of another. In legal terms, fraud can encompass a wide range of wrongful behaviors, including false statements, omissions of important information, or other deceptive practices. The intention to mislead is a core component of fraud, which differentiates it from other terms.

For example, if a person sells a property while knowingly concealing significant defects, that act of deliberately misleading the buyer constitutes fraud. This is essentially a violation of trust and can have serious legal repercussions.

The other options, while relevant in various legal contexts, do not encapsulate the concept of deception aimed at benefiting oneself at the cost of another party. Misdemeanor refers to a less severe criminal offense, coercion involves forcing someone to act against their will, and malpractice pertains to a failure to perform duties adequately, typically in professional settings. These terms do not specifically highlight the element of intentional deception that defines fraud.

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