Legal Definitions - fraud in the execution

Fraud in the Execution occurs when a person signs a document, but they are fundamentally deceived about the very nature or character of the document itself. This means they believe they are signing one type of document, but it is actually something entirely different and legally distinct. The person is not merely mistaken about the terms or contents of the document; rather, they are tricked into believing the document is not what it purports to be at all. Because there is no true intent to enter into the actual agreement, a document signed under fraud in the execution is generally considered void from the outset.

Here are a few examples to illustrate this concept:

• Example 1: The Misrepresented Deed

  An elderly homeowner, who has limited literacy and relies on a trusted neighbor for assistance, is asked by the neighbor to sign a document. The neighbor tells the homeowner it is a "petition to improve the local park" and points to the signature line. Believing they are supporting a community initiative, the homeowner signs. Unbeknownst to them, the document is actually a deed transferring ownership of their home to the neighbor.

  This illustrates fraud in the execution because the homeowner was deceived about the fundamental nature of the document. They believed they were signing a petition, which is a non-binding expression of support, but they were actually signing a legal instrument that transfers property ownership. Their intent to sign a petition does not translate into an intent to sign a deed.

• Example 2: The "Autograph" Contract

  A famous musician is approached by an enthusiastic fan backstage after a concert. The fan presents a thick binder, claiming it's a special "fan appreciation album" and asks the musician to sign a blank page inside as an autograph. The musician, accustomed to signing autographs, quickly signs the page without scrutinizing it. Later, it is revealed that the "blank page" was actually the signature page of a complex, multi-year endorsement contract, carefully positioned to appear as a simple autograph sheet.

  This demonstrates fraud in the execution because the musician was tricked into believing they were performing a simple act of signing an autograph for a fan, not entering into a legally binding commercial contract. The deception concerned the very character of the document they were signing.

• Example 3: The "Delivery Receipt" Waiver

  A busy office manager receives a package from a courier. The courier presents a clipboard with a document, stating, "Just sign here for the delivery receipt." The manager, in a hurry, quickly signs without reading, assuming it's merely confirmation of receipt. In reality, the document was a comprehensive waiver of liability, releasing the courier company from any responsibility for damage to the package or its contents, or for any injury sustained during delivery.

  This is an example of fraud in the execution because the office manager was deceived about the purpose and nature of the document. They believed they were signing a routine delivery acknowledgment, but they were actually signing away significant legal rights through a liability waiver. Their intent to confirm delivery does not equate to an intent to waive legal claims.