Which of the following actions is NOT typically considered fraud?

Prepare for the CA Foundation Business Law Exam with our comprehensive quiz. Utilize flashcards and multiple-choice questions, each complete with hints and explanations. Ace your exam confidently!

Fraud typically involves intentional deception made with the goal of securing an unfair or unlawful gain. In this context, unintentional error in communication does not fit the criteria for fraud, as it lacks the element of intent. Fraudulent actions generally require a deliberate intention to mislead or deceive the other party.

Intentional misrepresentation, deliberate omission of facts, and active concealment of information all involve a conscious decision to deceive another party. In contrast, an unintentional error occurs without this intent, which distinguishes it from the fraudulent behaviors characterized by a purposeful attempt to mislead others for personal gain.

Thus, the correct identification of the action that is not considered fraud is based on the absence of intent, highlighting the fundamental requirement for establishing fraudulent behavior.

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