Fraud in the factum is a type of fraud where misrepresentation causes one to enter a transaction without accurately realizing the risks, duties, or obligations incurred. This can be when the maker or drawer of a negotiable instrument, such as a promissory note or check, is induced to sign the instrument without a reasonable opportunity to learn of its fraudulent character or essential terms.
Fraud in the factum is a type of fraud where misrepresentation leads to entering into a transaction without fully understanding the associated risks, duties, or obligations. This can occur when the maker or drawer of a negotiable instrument like a promissory note or check is tricked into signing it without having enough time to discover its fraudulent nature or key terms.