Where a party has been induced by fraud to enter a contract, the Restatement of Torts permits the injured party to recover out-of-pocket damages but expressly excludes recovery of benefit-of-the-bargain damages.

Question

Quizplus · Accepted Answer

The Restatement (Second) of Torts allows for the recovery of both out-of-pocket damages and benefit-of-the-bargain damages in cases of fraudulent inducement.

Where a Party Has Been Induced by Fraud to Enter