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 Louisiana, 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 under false pretenses. This misrepresentation must be one that the other party reasonably relied upon, and it must result in harm or loss. Louisiana law, which is based on civil law traditions rather than common law, addresses fraudulent inducement under the Louisiana Civil Code. Specifically, articles 1953 and 1967 deal with fraud and its effects on contracts. If a party can prove that they were induced to enter into a contract by fraud, the contract may be annulled. However, the presence of a disclaimer of reliance provision in the contract could potentially shield the misrepresenting party from liability, depending on the specific language of the contract and the circumstances of the case. An attorney can provide guidance on the likelihood of success in a fraudulent inducement claim and the applicability of any disclaimer provisions.