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Nevada Law Library

Fraud In The Inducement

In Nevada, the elements for a claim of fraud in the inducement of a contract are:

1.†††††††† False representation made by defendant;

2.†††††††† Defendantís knowledge or belief that the representation was false (or knowledge that it had an insufficient basis for making the representation);

3.†††††††† Defendantís intention to induce plaintiff to consent to formation of contract;

4.†††††††† Plaintiffís justifiable reliance upon the misrepresentation; and

5.†††††††† Damage to plaintiff resulting from such reliance.

J. A. Jones Constr. Co. v. Lehrer McGovern Bovis, Inc., 120 Nev. 277 (2004); Lubbe v. Barba, 91 Nev. 596, 598; 540 P.2d 115, 118 (1975).