fraud in the inducement

Definition from Nolo’s Plain-English Law Dictionary

The use of deceit or trick to cause someone to act to his or her disadvantage, such as signing an agreement or deeding away real property. The heart of this type of fraud is misleading the other party as to the facts upon which that person will base his or her decision to act. Example: "There will be tax advantages to you if you let me take title to your property," or "You don't have to read the rest of the contract -- it is just routine legal language" but actually includes a balloon payment.

Definition provided by Nolo’s Plain-English Law Dictionary.