Your client is a corporation, Pros, who is working with another corporation, Cons, to build an office building downtown. The contract says the building materials will cost $50,000, but they actually only cost $45,000, and Cons has intentionally misled Pros to believe they are worth $50,000. Which legal issue is raised above?

This raises fraud in the inducement: Cons intentionally misrepresented the value of the materials to persuade Pros to enter the contract. The materials cost $45,000, not the represented $50,000. Fraud in the execution would involve deception about what kind of agreement Pros was signing, which is not described here.

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