Final answer:
Fraud in the inducement is when false statements or deceptive conduct mislead someone into entering into an agreement, focusing on the individual's reasons for the contract.
Step-by-step explanation:
Basically, fraud in the inducement occurs when a person or entity uses false statements, misrepresentations, or deceitful conduct to induce another party into entering into a contract or agreement. Unlike fraud about the nature of the agreement itself, fraud in the inducement targets the other party's reasons or motivation for entering into the contract. For example, if someone is promised a significant return on investment by investing in a scheme that is actually non-existent, this could be considered fraud in the inducement, as they were misled about the fundamental aspects of the deal. It is akin to the scenario where an e-mail offer from a so-called displaced Nigerian prince promises wealth to someone who helps to move his millions of dollars to a safe account, a classic example of a too-good-to-be-true proposal aiming to induce a party to take actions based on deceit.