Nashville, TN – Fraud is a serious problem where a person or individual intends to make misrepresentations to a business for the purpose of making money illegitimately. This is distinct from a simple failure to live up to a contract’s terms, which is considered a breach of contract. Those engaged in fraudulent activities may face a combination of civil and criminal penalties. Any business that is concerned about these matters can have an attorney who practices business and contract law review relevant documentation and other evidence to detect fraud.
How does contract fraud happen?
There are a couple of different types of contract fraud that can possibly happen. The first is fraudulent inducement. This is when a business tries to get another party to agree to a deal where it is clear that it will never be completed. A common example is when the contract is to provide a certain service, yet the person offering the service does not actually have the relevant skill or expertise, and they will never be able to complete the terms as written. The second type of fraud is when there is only a fraudulent term that is meant to give an advantage such as additional sales or profit. In either case, to prove fraud, there must be proof that there was an intentional misrepresentation of facts that were known to be false at the time, and that one party meant to intentionally mislead the other regarding at least part of the contract.
Ways to detect fraud
Fraud is not always easy to detect without some kind of external evidence outside of the contract that one party is being dishonest or never had any intention of making a legitimate agreement. Businesses can make an inventory of areas where they may be at risk depending on the specific industry. At a later time, agreements that contain any level of risk can be audited for problems with unpaid invoices, debts, and related matters.
Background checks of external businesses and employees can be another important fraud prevention and detection measure. If a person or company has a history of issues, it is possible that they may be engaging in fraudulent or dishonest practices. Sometimes, just a simple search on the internet can provide details about why a person or company is not trustworthy.
Proper accounting practices are important as well. The company should have a good grasp of where all of their funds are being sent or received from.
Business attorneys in Tennessee
The Law Office of George R. Fusner is a firm that represents businesses in the Nashville area. People who need more information can get in touch with attorneys near me to learn more.
Firm contact info:
7104 Peach Court, Brentwood TN 37027
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