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What is detrimental reliance?

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Detrimental reliance is an element of a cause of action or several causes of action in the business litigation world. For example, fraudulent inducement. When someone commits a fraud upon another, the person that the fraud is committed upon usually detrimentally relies on the representations made by the person committing the fraud and takes some sort of affirmative act in reliance on that representation. As a result of that reliance, the person is damaged. That’s where they come to an attorney and discuss the damages sustained in a business or corporate matter.

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