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 Rhode Island, fraudulent inducement is recognized as a cause of action where one party intentionally misrepresents a material fact in order to induce another party to enter into a contract. The misrepresented fact must be one that the other party reasonably relies upon, and this reliance 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 Rhode Island, the plaintiff must prove that the defendant made a false representation with the intention of inducing the plaintiff to act upon it, that the plaintiff justifiably relied on the representation, and that the plaintiff suffered damages as a result. However, the presence of a disclaimer of reliance provision within the contract may affect the outcome of the case. Such a provision asserts that the party did not rely on the other's representations when entering into the contract, which can potentially shield the misrepresenting party from liability. The enforceability of such disclaimers and the liability of the parties will ultimately depend on the specific language of the contract and the circumstances surrounding the transaction.