Fraud occurs when one party intentionally deceives the other party or conceals information to lead them into concluding a contract that they would not have entered into if they had known the truth. This means that one party causes the other party to be mistaken or keeps them in error with the intention of inducing them to conclude the contract. Fraud can be committed by a party to the contract or by a third party. If a third party commits the fraud, the party benefitting from it must be aware of the deception.119 The defrauded party may request the annulment of the contract even if the error was not essential. The party that entered into the contract due to fraud also has the right to claim compensation for any damage incurred. A gratuitous contract may be annulled even if the fraud was committed by a third party, regardless of whether the other contracting party knew or should have known about it at the time of contract conclusion.120
Example: When concluding a sales contract, A (the seller) does not inform B (the buyer) that the car had previously been damaged in a traffic accident.
