Fraudulent Inducement in Florida Business Litigation 

 Posted on March 13, 2025 in Litigation

When competitors or clients behave deceptively, it can threaten a business’s bottom line and reputation. If your Florida business has been the victim of fraud, you have a right to turn to the legal system for protection and redress.

One common type of civil (rather than criminal) fraud is fraudulent inducement, and it happens when a business or individual makes false or misleading statements inducing another into entering into a contract. You can make a claim for fraud in the inducement in a court of law. An experienced Broward County, FL business law attorney can represent you in a commercial lawsuit for fraudulent inducement.

What Does Fraudulent Inducement Look Like In Practice?

To understand whether your company may have a claim for fraudulent inducement, it can be helpful to look at examples of what this type of fraud looks like in practice. When a company inflates its financial statements to obtain your investment, or conceals the condition of a commercial property to get you to enter into a commercial rental agreement, that could constitute fraudulent inducement.

Can You Use Fraudulent Inducement As a Defense to a Breach of Contract Claim?

Aside from being a claim you can make in a lawsuit, fraudulent inducement is also sometimes used as a defense to a breach of contract claim. If your company faces a breach of contract lawsuit, you can argue that the contract is void because you entered into it based on the other party’s fraud in the inducement. If the contract is void, so is the breach of contract claim.

How Do You Prove Fraud in the Inducement?

You need to prove the following elements to make a case for fraud in the inducement: 

• The business or individual made a false statement of material fact,

• They knew or should have known that this statement was false,

• The false statement was made to induce you to enter into a contract, and

• You relied on that false statement, and this reliance harmed you.

How Long Do You Have to Bring a Claim for Fraud in the Inducement?

In Florida, the law states that you have four years to bring a claim for fraud. This includes fraud in the inducement.

Call a Broward County, FL Business Litigation Attorney

If your business entered into an agreement based on unknown fraudulent representations, you could have a claim for fraudulent inducement. Call the experienced Oakland Park, FL business litigation attorney at The Elliot Legal Group, P.A. to discuss a competitor, client, or other business that has acted fraudulently. Attorney Gavin Elliot is available for a consultation by calling 754-332-2101.