Fraudulent inducement—also known as fraud in the inducement—is a tort (wrongful act) claim or cause of action recognized in some states for fraud that occurs when one party to a contract intentionally misrepresents a material fact—usually regarding the risks, duties, or obligations involved—that another party to the contract reasonably relies on, causing the second party to enter into a contract it would not have agreed to if not for the fraudulent representation, and causing harm (damages or losses) to the party who reasonably relied on the misrepresentation.

Because fraudulent inducement combines elements of contract and tort law it is sometimes referred to as a "contort" claim or cause of action. In states that recognize a fraudulent inducement cause of action, the plaintiff may file a lawsuit and recover damages.

But a party who made an intentional misrepresentation may avoid liability if the other party contractually disclaimed any reliance on the first party’s fraudulent representations (a disclaimer of reliance provision in the contract). Whether a party is liable in any particular case depends on the contract’s language and the totality of the surrounding circumstances.

In Arizona, fraudulent inducement is recognized as a cause of action when one party to a contract intentionally misrepresents a material fact, leading another party to enter into the contract based on that misrepresentation. The misrepresented fact must be material and such that the defrauded party reasonably relied on it, resulting in harm or loss. This cause of action is a blend of contract and tort law, sometimes referred to as a 'contort' claim. To succeed in a fraudulent inducement claim in Arizona, the plaintiff must prove the elements of fraud, including a false statement of fact, knowledge that the statement was false, intent that the statement be acted upon, the victim's reliance on the statement, and resulting damage. However, the defendant may be able to avoid liability if there is a disclaimer of reliance provision within the contract that was agreed upon by the parties. The effectiveness of such a disclaimer would depend on the specific language of the contract and the circumstances surrounding the agreement. It is important to note that the interpretation and enforcement of such provisions can be complex and fact-specific, and an attorney can provide guidance on the applicability and potential outcomes of a fraudulent inducement claim in Arizona.