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Fraud in factum occurs when a person is deceived into entering a contract without understanding its true nature or essential terms. This type of fraud typically involves misrepresentations or concealments that lead the misled party to believe they are agreeing to something different from what the contract actually entails. As a result, the affected party can often void the contract due to the deception. Unlike fraud in the inducement, which relates to misleading motives for entering a contract, fraud in factum directly concerns the understanding of the agreement itself.

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