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 North Carolina, 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 other 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 establish a claim for fraudulent inducement in North Carolina, the plaintiff must prove that the defendant made a false representation of a material fact, knowing it was false or made recklessly without any knowledge of its truth, with the intention that the other party would act upon it, and that the plaintiff was indeed induced to act, resulting in injury. If a contract includes a disclaimer of reliance provision, it may protect the party who made the misrepresentation from liability, but this depends on the specific language of the contract and the overall context of the situation. An attorney can provide guidance on the likelihood of success for a fraudulent inducement claim and the potential impact of any disclaimer of reliance provisions.