The Wongs bought a hillside home in San Carlos, California, for $2.35 million from the Stolers. Several

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The Wongs bought a hillside home in San Carlos, California, for $2.35 million from the Stolers. Several months after they moved in, the Wongs discovered they were connected to a private sewer system and not directly serviced by the city’s public system. Believing they had been deceived, they sued the Stolers and the real estate agents who brokered the sale, alleging several causes of action, including rescission. After the Wongs settled their dispute with the real estate agents for $200,000, a court trial was held on the rescission claim only. Although the court found that the Stolers, with reckless disregard, made negligent misrepresentations to the Wongs, it declined to effectuate a rescission of the contract. Instead, it ordered the Stolers to be, for a limited time, indemnifiers to the Wongs for sewer maintenance and repair costs exceeding the $200,000 they obtained in their settlement with the agents. The Wongs appealed. Decide. Explain.

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Law Business And Society

ISBN: 9781260247794

13th Edition

Authors: Tony McAdams, Kiren Dosanjh Zucker, Kristofer Neslund, Kari Smoker

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