This month's column will discuss three decisions, two by the Appellate Division, First Department, and one by the U.S. Court of Appeals for the Second Circuit, that addressed interesting points of contract law.
In VisionChina Media v. Shareholder Representative Services,1 the First Department affirmed the dismissal of a fraud in the inducement claim in connection with a corporate acquisition. The decision follows the well-established principle that when a sophisticated party in a substantial transaction chooses to proceed with the transaction when it has notice that representations and warranties made to it were not true, a court will not allow the party to thereafter prosecute a claim that the other party fraudulently induced it to close the transaction.
