An intentional misrepresentation uttered to cause another to rely on it to his detriment. constructive fraud. A misrepresentation deemed by the law to be fraud even though unintentional. fraud in the factum. The nature of a legal document is misrepresented to a party who is induced to sign it based on an incorrect understanding of its nature. fraud in the inducement. A party is induced to sign a contract by misrepresentation, not of the terms of the contract itself, but of the level of risk o...