Thursday, September 10, 2009
How does fraudulent inducement differ from fraud plain and simple?
FRAUD CAUSE OF ACTION VS. FRAUDULENT INDUCEMENT Fraudulent inducement is a particular species of fraud that arises only in the context of a contract and requires the existence of a contract as part of its proof. Haase v. Glazner, 62 S.W.3d 795, 798 (Tex. 2001); Clark v. Power Mktg. Direct, Inc., 192 S.W.3d 796, 799 (Tex. App.--Houston [1st Dist.] 2006, no pet.). That is, with a fraudulent inducement claim, the elements of fraud must be established as they relate to an agreement between the parties. Haase, 62 S.W.3d at 798-99. SOURCE: 01-07-00792-CV (9/10/09)