Asked by Riley Bruns on Apr 30, 2024
Verified
David entered into a contract to sell Ruth a parcel of land fully aware that Ruth's intention of the purchase was to construct a high-rise commercial building.David was also aware that the subsurface soil condition of the property would prevent such construction.The soil condition was not readily discoverable in the course of normal inspections or soil evaluations.David did not disclose the existence of the condition to Ruth,nor did Ruth make any inquiry of David as to the suitability of the land for the intended development.David's silence as to the soil condition:
A) renders the contract voidable at Ruth's discretion.
B) entitles Ruth only to monetary damages.
C) makes the contract a case of a mutual mistake.
D) does not affect the validity of the contract.
Subsurface Soil Condition
Refers to the properties and characteristics of the soil beneath the surface, important for construction and agricultural activities.
Voidable
A term referring to a valid agreement that may be legally declared invalid by one of the parties.
Mutual Mistake
A misunderstanding shared by all parties to a contract, causing a fundamental misbelief about a vital fact of the agreement.
- Understand the distinction between hiding information and failing to disclose it in the context of contract law.
- Understand valid bases for the application of rescission in disputes over contracts.
Verified Answer
DC
David CaffreyMay 01, 2024
Final Answer :
A
Explanation :
David has engaged in the nondisclosure of a fact,equivalent to an assertion,by failing to volunteer information about a latent (hidden)defect that materially affects the value of the property he is selling.Hence,the contract can become voidable at Ruth's discretion.
Learning Objectives
- Understand the distinction between hiding information and failing to disclose it in the context of contract law.
- Understand valid bases for the application of rescission in disputes over contracts.