fraud in the factum

Fraud occurring when a legal instrument as actually executed differs from the one intended for execution by the person who executes it, or when the instrument may have had no legal existence.

• Compared to fraud in the inducement, fraud in the factum occurs only rarely, as when a blind person signs a mortgage when misleadingly told that it is just a letter.

— Also termed fraud in the execution; fraud in the making. Cf. fraud in the inducement. [Cases: Contracts 94(1). C.J.S. Contracts §§ 136, 139–140, 156–160, 170–171, 173–174.]


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