What is the term for a statement made to induce another party into a contract?

The term that refers to a statement made to induce another party into a contract is "warranty." A warranty is a formal statement or guarantee that certain conditions or facts are true, provided by one party to another during the contract negotiation process. This statement helps assure the other party that they can rely on its accuracy, thus influencing their decision to enter into the contract.

Warranties can be express, meaning clearly stated, or implied, meaning they are inferred from the nature of the transaction or circumstances. They serve to protect the interests of the party relying on them by providing grounds for legal recourse should the statements turn out to be false.

In contrast, the other terms relate to different contexts in legal and contractual frameworks. "Ultra vires" refers to actions taken beyond one's legal authority, which is not relevant to inducing a contract. "Agreement" is a broader term that signifies the mutual understanding between parties but doesn’t specifically capture the idea of a statement meant to induce. "Indemnification" relates to compensating for loss or damage, which also does not pertain specifically to the concept of inducing a party into a contract.