fraud in the inducement


Also found in: Thesaurus, Legal, Wikipedia.
Related to fraud in the inducement: fraud in fact
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.fraud in the inducement - fraud which intentionally causes a person to execute and instrument or make an agreement or render a judgment; e.g., misleading someone about the true facts
fraud - intentional deception resulting in injury to another person
References in periodicals archive ?
Claims for fraud in the inducement also arise frequently in earnout litigation, typically when the sellers allege that the buyers of the business or asset misrepresented their abilities or intentions to generate revenue sufficient to meet the earn-out target.
The trial court held that in the absence of fraud, the arbitration and venue clauses were enforceable, but the allegations of fraud in the inducement of the agreement were to be resolved by a hearing prior to either party compelling arbitration.
117) Although the Huron Tool court recognized that fraud in the inducement presented a special situation, because misrepresentations undermine the ability to negotiate freely,(118) the court added an additional caveat: The fraud claim must be factually distinguishable.
Capital Video, the landlord sought to rescind a new commercial lease on the grounds of fraud in the inducement by the tenant.
Courts have been less than consistent, however, in their approach to whether commercial tort claims, such as fraud in the inducement, misrepresentation, conspiracy, etc.
3) In HTP the court held that a "cause of action for fraud in the inducement of contract is an independent tort and is not barred by the economic loss rule.
Fraud in the inducement presents a special situation where parties to a contract appear to negotiate freely which normally would constitute grounds for invoking the economic loss doctrine but where in fact the ability of one party to negotiate fair terms and make an informed decision is undermined by the other party's fraudulent behavior.