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Inducement Fraud 101:

Ross Pitcoff Law > Legal Advice  > Inducement Fraud 101:

Inducement Fraud 101:

Fraud Inducement occurs when a person intentionally tricks another into signing an agreement to one’s disadvantage by using fraudulent statements and/or representations.


Because fraud negates the “meeting of the minds” required of a contract, the injured party can seek damages or terminate the contract altogether.


Since fraud in the inducement is illegal, it can render the contract voidable, thereby releasing the injured party from any obligation to it. If the court finds that fraud occurred, the violating party can be held liable for compensatory damages, and possibly even punitive damages if the conduct complained of is shocking in nature.


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