Good Faith as a Defense to Fraud Charge - Explained
When is Good Faith a Defense to Fraud?
Written by J. Mance Gordon
Updated at April 21st, 2024
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How does Good Faith affect fraud?
Fraud requires knowing and willful conduct carried out with the intent to defraud someone. As such, good faith in one's actions is a defense to the allegations.
When is Good Faith a Defense to Fraud?
The good faith defense is that the defendant acted in good faith and did not have the necessary intent to defraud anyone.
It does not matter that a person's statement or belief is wrong, there is no action for fraud unless the intent is to deceive is present.
Further, an individual's lack of due care in making a statement is not relevant in determining fraud.
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