The Difference Between Civil Fraud and Breach of Contract Claims
Posted on April 29, 2025
When it comes to civil litigation cases, there are often misconceptions about the differences between breaches of contract and civil fraud. It is not uncommon for these two types of civil litigation cases or terms to be interchangeable. While there can be overlap and breaches of contracts can be involved with civil fraud, they are not the same. If you are in the middle of a civil dispute, understanding the difference between civil fraud and contract breaches will help ensure you get the best civil litigation lawyer for your case. As an experienced and trusted civil litigation lawyer, you can trust Robert Karrass and the entire Karrass Law team for tailored legal advice and effective representation based on our vast experience and winning track record in a wide range of civil legal cases. When you choose Karrass Law, you are confident that you will receive strong guidance, strategic representation, and the legal support needed to protect your interests in your case. Contact our team today to book a lawyer consultation.
Here are some key distinctions between civil fraud and breach of contract claims.
What is a Breach of Contract?
A breach of contract is a particular charge, and specific requirements must be met for something to be considered as such. A breach of contract is a failure to uphold one or more aspects of a contract without a legitimate legal excuse.
An example of a breach of contract would be if a business failed to make a payment to a vendor on the date outlined in their contract. Both a failure to pay and a late payment would be considered a breach. The existence of a legally binding contract is absolutely essential for this kind of charge. If you’ve been involved with a contract breach and are pursuing legal action, contact the experienced civil litigation lawyers at Karrass Law to explore your options.
What is Civil Fraud?
Civil fraud is a much broader term when compared to a breach of contract. This term refers to the deceitful practices or intentional misrepresentations of a party that cause harm to another party.
An example of civil fraud would be if a business created a false investment opportunity or Ponzi scheme where they used new investments to pay older investors. No contract is required to prove civil fraud. Your civil fraud lawyer will need to prove that the opposition intentionally misrepresented information for their personal gain. Or if you’ve been sued for civil fraud, a skilled civil litigation lawyer like Robert Karrass can help you protect your reputation and minimize damages owed to the defendant.
Key Differences Between the Two Claims
There are a few key differences that distinguish a breach of contract from a case of civil fraud.
Intent
A breach of contract can occur with or without intent. However, intent is required to prove civil fraud. You must prove that the other party knowingly provided you with deceitful information.
Damages
The majority of the time, in breach of contract cases, compensatory damages are awarded to the plaintiff. This helps ensure that the plaintiff is in the same financial position that they would have been if the contract had been upheld. When it comes to civil fraud charges, although compensatory damages can be awarded, punitive damages can be as well. Punitive damages aim to punish the defendant for their behaviour.
Trust Your Civil Litigation Experts at Karrass Law from Contracts to Fraud
Although both breach of contract cases and civil fraud cases are very different, both require the help of an experienced civil litigation lawyer. A reputable lawyer can help you ensure that the criteria for your charges are met and organize the evidence, testimony, and arguments required to bring your charges against the defendant. Contact Karrass Law today to speak with a civil fraud lawyer, or call now to book a lawyer consultation.