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What is fraudulent inducement?

Fraudulent inducement is where somebody convinces you to enter into a contract based upon a lie. They lied to you about a material fact that is important to your decision to enter into the contract, you actually relied upon that, and you suffered damages as a result of that. It can be the basis of a claim, a lawsuit, or it could be a basis of a defense if somebody sues you for breach of contract and you say, “I wouldn’t have entered into that contract had he told me the truth about the value of so and so.” Then that’s a basis of his affirmative defense to the claim.

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