If a deal or business relationship goes south, the parties will usually allege a breach of contract as well as some type of fraud.

Specifically, it is very common for one party to claim that the other party either actively misrepresented or withheld important material information so that they would never have signed the contract in the first place.

Given fraudulent inducement claims rely upon the law governing fraud as well as contract, they can be very complex.  This is especially so because there are a host of defenses to fraudulent inducement claims in New York and New Jersey. 

Fraudulent inducement claims should be taken very seriously as they could lead to the business owner being personally liable for the debts of the business should a court decide to pierce the corporate veil.

Click here to learn more about the law of fraudulent inducement.