15. Fraud on a statute. - An act is sometimes said to be a fraud on a statute when it is an evasion of its provisions. For example, A. sold a patent to B. in consideration of B. paying him royalties; B. at the same time lent A. £12,500, and it was agreed that B. should retain one-half 18. Criminal law. - Certain frauds of the royalties, as they became payable, are also dealt with by the criminal law, towards satisfaction of the debt; provided, and constitute misdemeanors. Such are that if A. became bankrupt B. might retain frauds committed by public officers in disthe whole of the royalties in satisfaction charge of their duties and affecting the of the debt. This proviso was held to be a fraud upon the bankruptcy laws, and void. Ex parte Mackay, L. R. 8 Ch. 643. "Contra legem facit, qui id facit quod lex prohibet; in fraudem vero, qui salvis verbis legis sententiam ejus circumvenit." "Fraus enim legi fit, ubi quod fieri noluit, fieri autem non vetuit, id fit." Dig. i. 3, fr. 29, 30. public (Steph. Cr. Dig. 73), frauds committed by trustees, directors and other officers. (Id. 260 et seq.) Also, cheats, and swindling by false pretences (q. v.) FRAUD, (defined). 61 III. 372; 39 Ind. 77; 4 Park. (N. Y.) Cr. 161; 9 Wend. (N. Y.) 187; 2 East 92, 108; 2 Chit. Pl. 392. (what constitutes). Baldw. (U. S.) 331, 337; 5 Ala. 596, 601; 6 Mass. 339; 6 Halst. (N. J.) 295, 310; 7 Wend. (N. Y.) 9, 20; 2 Burr. 931, 938; 1 Russ. 485, 493; 12 Ves. 321. 324. 16. Statutory fraud. - Certain acts are made frauds by statute. Thus, by the English Companies Act, 1867, a prospectus which does not comply with the requirements of the act in specifying all contracts sion" and "deceit"). 4 Bac. Abr. 381. entered into by the company, or the pro311; (effect of). 12 Pet. (U. S.) 11. (synonymous with "covin," ," "collu39 How. (N. Y.) Pr. 172. (sale procured by). 1 Hill (N. Y.) 302, (in bankrupt act). 5 Otto (U. S.) 704 ; (in a statute). 77 N. Y. 427, 429. 187. FRAUD, ACTUAL, (what is). Story Eq. Jur. (distinguished from "constructive"). moters, trustees or directors thereof, before the issue of the prospectus, is to be deemed 16 Bankr. Reg. 116; 23 Hun (N. Y.) 448. fraudulent. (30 and 31 Vict. c. 131, § 38. As to the remedy of the person defrauded, see Grover's Case, 1 Ch. D. 182.) This is an instance of "legal" fraud, in which proof of fraudulent intention is not required. Supra, & 6, and see FRAUDULENT CONVEYANCES; FRAUDULENT PREFERENCE. 17. Effect of fraud. - The effect of fraud may be said in general to be to entitle the injured person to avoid the transaction induced by the fraud (e. g. in the case of a contract, to have it rescinded), or to recover damages for the injury. (See DECEIT.) It gives rise to a defence to any action brought by the fraudulent party to enforce the contract or other transaction, but it does not make it void ab initio. (See Chit. Cont. 628; Oakes v. Turquand, L. R. 2 H. L. 325; Broom Com. L. 335 et seq.; Urquhart v, Macpherson, 3 App. Cas. 831. As to actions to set aside judgments, &c., obtained by fraud, see Flower v. Lloyd, 6 Ch. D. 297; 10 Ch. D. 327; Dan. Ch. Pr. 29 Conn. 588, n.; 13 Abb. (N. Y.) Pr. 405. FRAUD AND FALSEHOOD, (necessary to sup387. port an action of false representation). Holt FRAUD, CONSTRUCTIVE, (what is). 35 Barb. (Ν. Υ.) 444. FRAUD, EXCEPT IN CASES OF, (in N. C. constitution, Art. 1, § 16). 72 N. C. 384. FRAUD IN FACT.-See FRAUD, 2 2-5. FRAUD IN FACT, (distinguished from "fraud in law"). 7 Cow. (N. Y.) 301; 8 Id. 406, 438; 9 Johns. (N. Y.) 337; 7 Wend. (N. Y.) 436;64 Pa. St. 352, 356; 10 Serg. & R. (Pa.) 84. 16. FRAUD IN LAW.-See FRAUD, 26FRAUD OR FALSE SWEARING, (in insurance policy). 1 Hill (N. Y.) 71. FRAUDS, STATUTE OF. - See