ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Education and Science»
  • Law & Legal Issues

Fraudulent Inducement Claims

Updated on April 27, 2011

There are certain different kinds of money rewards available for fraudulent inducement, some of which involves setting aside the contract, also known as rescission that is making the claimant rescind the contract and put both parties back to their original positions. In fraudulent inducement cases, you could also even go for damages and try to be compensated for reliance losses or losses incurred on top of expectation damages. You simply have to prove fraud, although the fraud element may well be rather tricky if you do not give recourse to the misrepresentation act and its helpful fiction of fraud. The controversy surrounding it is of course mainly of academic interest only. The only way to know exactly what you can claim for is of course to hire a lawyer. But before you invest in the hefty fees, think about the events that have happened leading to the fraudulent inducement and try to match it with some of the factors below.

Inducement element has to be proved along certain criteria. To be exact if you wish to commence an action for fraudulent inducement, you would have to show that the fraudulent act or statement had induced you to enter into the contract that is; it had caused you to enter into one. There has to be some measure of causation linking the fraud to the contract. Thankfully for you if you are claiming, the standard of causation to be proved is rather modest and can be easily satisfied.

Before we elaborate on the easy standard, here are some boundary markers to keep in mind that would sever the link of causation for fraudulent inducement. If you had been unaware of the representation than knowing about it after you had made the contract would not help you under this doctrine, you would have to try something else. The same goes for if you had known that the representation made to you was untrue, or if you were totally oblivious or did not care for the representation at all, for example if you were relying on other information or had regarded it as unimportant. However its importance is of course a matter of debate.

The misrepresentation need not be the most important reason to induce the person into the contract, nor the only one. It is more than sufficient if it is one of the reasons for going into the contract, according to Edgington v Fitzmaurice. As a result it does not have to be a ‘but for’ reason nor ‘the’ reason nor ‘the predominant’ reason to enter into the contract. It is also thus irrelevant that the claimant might have entered into the contract anyway even should there have been no misrepresentation. The more material and important this reason is, the easier it is to infer inducement, its presence is a good sign of fraudulent inducement coming about.

It is also irrelevant, according to Redgrave v Hurd that the claimant could have but did not bother to verify the truth of the representations made. It would not in the ordinary course of nature bar the claim, but of course the scope of that has been tempered by a certain expectation of reasonableness insofar as a person could reasonably be expected to make use of an opportunity to discover the accuracy of the representation, or whether it is unreasonable to believe and rely on a representation so absurd. In cases of fraudulent inducement, a defendant is unlikely to have much shelter from this aspect.

Keep in mind one more caveat however that the experience of the claimant would also play a part at times. How experienced and business-minded you are may signal a certain expectation of higher standards on your part and may free up the fraudulent inducement.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)