Delaware Superior Court Explains Fraudulent Inducement Claims

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ITW Global Investments Inc. v. American International Partners Capital Fund IV, L.P., C.A. No. 14C-10-236 JRJ (June 24, 2015)

This decision explains several important aspects of Delaware law. First, a claim for fraud cannot overlap with a breach of contract claim or it will be dismissed.

Second, a fraudulent inducement claim must be based on pre-contract acts, not something in the contract itself.  Third, an anti-reliance clause may not bar claims of concealment.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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