Fraud in the Inducement

Fraud in the Inducement

Definition

Fraud in which a person uses deceit or trickery to persuade another person to act in a certain way. Fraud in the inducement can result in a party signing a contract due to being misled about material terms. In criminal law, fraud in the inducement can occur if a perpetrator tricks a victim into consenting to what the victim knows is sexual intercourse, such as a doctor telling a patient that intercourse with the doctor is medically necessary.

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