Positive Fraud Law and Legal Definition

Positive fraud means actual deceit. It is concealing something or making a false representation with an evil intent to cause injury to another. It is distinguished from constructive fraud. It is also known as fraud in fact.

The fraud referred to in § 33 of the Bankrupt Act of 1867 means positive fraud, or fraud in fact, involving moral turpitude or intentional wrong; and not implied fraud, or fraud in law, which may exist without the imputation of bad faith or immorality. [Neal v. Clark, 95 U.S. 704 (U.S. 1878)].