Asked by Blake cannistraro on Jun 14, 2024
Verified
James entered into a contract to sell his house to Mikhael.James knows that the house has a bad termite infestation that significantly reduces the value of the house.However,the topic of termites never came up and James did not volunteer any information about the termites.Mikhael is not aware of the termite problem.Under the law of most states,has legal misrepresentation occurred here?
A) No,because James made no statement that was false.
B) No,because a seller does not have a duty to reveal all faults.
C) Yes,because a seller must always inform a buyer about defects that are not obvious.
D) Yes,because James is concealing the termite infestation from Mikhael.
Legal Misrepresentation
An untrue assertion of reality presented by one individual to another, resulting in the latter being persuaded to enter into an agreement.
Concealing
The act of hiding, covering, or keeping something secret, often with the intent to deceive or defraud.
Termite Infestation
The presence and dwelling of termites in a structure, causing damage and potentially undermining the integrity of the property.
- Distinguish among the concepts of concealment, nondisclosure, and misrepresentation within the framework of contract law.
Verified Answer
TA
Tristan AndinoJun 20, 2024
Final Answer :
D
Explanation :
James' failure to volunteer information amounts to a nondisclosure of fact.Most states,in the case of real estate,hold that a seller who knows about a latent (hidden)defect that materially affects the value of the property he is selling has the obligation to speak up about this defect.
Learning Objectives
- Distinguish among the concepts of concealment, nondisclosure, and misrepresentation within the framework of contract law.