fraud in the inducement

fraud in the inducement

Fraud occurring when a misrepresentation leads another to enter into a transaction with a false impression of the risks, duties, or obligations involved; an intentional misrepresentation of a material risk or duty reasonably relied on, thereby injuring the other party without vitiating the contract itself, esp. about a fact relating to value.

¡ª Also termed fraud in the procurement. Cf. fraud in the factum. [Cases: Contracts 94(1); Fraud 3, 24. C.J.S. Contracts ¡ì¡ì 136, 139¨C140, 156¨C160, 170¨C171, 173¨C174.]


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Carl, Chinese legal translator, specializes in translating legal documents pertaining to complex business disputes.