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What is fraudulent inducement?

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Fraud in the inducement is usually a business term in a commercial litigation setting. To prove that you have been induced into entering into a transaction you must prove the following: 1) That the person made a false statement of material fact; that the person knew or should have known that the statement itself was false; that the person intended for you to rely on that statement; and that you did rely on the fraudulent statement and suffered significant damages or even nominal damages as a result of that reliance.

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