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 Massachusetts, fraudulent inducement is recognized as a cause of action when a 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 one that the other party reasonably relied upon, and it must result in harm or loss. This cause of action is a blend of contract and tort law, sometimes referred to as a 'contort' claim. To establish a claim for fraudulent inducement in Massachusetts, the plaintiff must prove that there was a false representation of a material fact made with knowledge of its falsity for the purpose of inducing the other party to act, and that the other party reasonably relied upon the representation as true and was induced to act to its damage. However, the liability for fraudulent inducement can be affected by the contract's language, such as a disclaimer of reliance provision, which may limit or prevent a party from claiming they relied on the misrepresentation. The outcome of such cases will depend on the specific language of the contract and the overall context of the situation.