Fraud by failing to disclose information requires what condition?

Fraud by failing to disclose information fundamentally hinges on the existence of a legal duty to disclose pertinent information. This legal duty arises in specific contexts where a party is obligated to provide information that could materially affect the decisions of others involved in a transaction or relationship. The failure to disclose such information, when there is a clear legal obligation to do so, can lead to claims of fraud because it can mislead the other party and cause them harm.

In various legal contexts, certain relationships impose a duty to disclose. For example, fiduciary relationships, such as that between a lawyer and client, or a trustee and beneficiary, require full disclosure of all relevant information to ensure fair and informed decision-making. When this duty is breached through non-disclosure, it meets the criteria for fraudulent behavior, as it involves an intentional omission designed to deceive.

The other options do not accurately define the core requirement of fraud by failing to disclose. Breaches of confidentiality do not necessarily constitute fraud unless there is also a legal duty to disclose involved. An agreement with stakeholders or a verbal contract does not in itself create a duty to disclose and is therefore not relevant in this context. The emphasis on a legal duty to disclose underscores the legal significance of the relationship between the parties involved and is