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Constructive Fraud
Deception or misrepresentation made without the intent to deceive, usually due to neglect or failure to fulfill a duty, which causes harm to another party.
Grossly Negligent
A severe lack of care or the extreme departure from the care a reasonable person would exercise in a similar situation, often resulting in harm or damage.
Actual Fraud
Deliberate deception by one party to secure unfair or unlawful gain, or to deprive another party of a legal right.
Ultramares Rule
A legal principle that limits the liability of accountants for negligence to parties with whom they are in direct contractual relationship unless fraud is involved.
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