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 Oregon, fraudulent inducement is recognized as a cause of action where one party intentionally misrepresents a material fact to induce another party into a contract. The misrepresented fact must be such that the other party relies on it, and this reliance results in entering a contract they otherwise would not have agreed to, leading to 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 Oregon, the plaintiff must prove that the defendant made a false representation, knew it was false, intended to induce the plaintiff to act, and that the plaintiff suffered damages as a result of acting on the false representation. However, 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 enforceability of such disclaimers depends on the specific language used and the circumstances of the case. It is important to note that the nuances of each case can significantly impact the outcome, and an attorney can provide specific guidance based on the facts at hand.