Constructive fraud is a legal fiction

Legal fiction

A legal fiction is a fact assumed or created by courts which is then used in order to apply a legal rule which was not necessarily designed to be used in that way...

 used in the law

Law

Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...

 to describe a situation where a person or entity gained an unfair advantage over another by deceitful, or unfair, methods. Intent does not need to be shown as in the case of actual fraud

Fraud

In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

. Some unfair methods may include not telling customers about defects in a product.

The elements are:

1. a duty owing by the party to be charged to the complaining party due to their relationship;
2. violation of that duty by the making of deceptive material misrepresentations of past or existing facts or remaining silent when a duty to speak exists;
3. reliance thereon by the complaining party;
4. injury to the complaining party as a proximate result thereof; and
5. the gaining of an advantage by the party to be charged at the expense of the complaining party.