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 Virginia, 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 one that the other party reasonably relies upon, leading them to enter into the contract, and subsequently causes them 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 Virginia, the plaintiff must prove that the defendant made a false representation, knew it was false, intended to mislead the plaintiff, and that the plaintiff was damaged by relying on the misrepresentation. Virginia courts will consider the language of the contract and the overall circumstances to determine liability. It is also possible for a party to limit or avoid liability for fraudulent inducement through a disclaimer of reliance provision in the contract, but the enforceability of such provisions can depend on the specific facts of the case and whether the disclaimer meets certain legal standards.