Explain fraud in the inducement with an example
What will be an ideal response?
Fraud in the inducement occurs when the party knows what he or she is signing but has been fraudulently induced to enter into the contract. Example: Lyle tells Candice that he is forming a partnership to invest in drilling for oil in an oil field and invites her to invest in this venture. In reality, though, there is no oil field, and Lyle intends to use whatever money he receives from Candice for his personal expenses. Candice relies on Lyle's statements and invests $30,000. Lyle absconds with Candice's $30,000 investment. Here, there has been fraud in the inducement. Candice has been induced to give Lyle $30,000 based on Lyle's misrepresentation of fact. Candice can rescind the contract and recover the money from Lyle, if she can find him and locate his money or property.
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Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false
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