Question
Analyze the fact scenarios, involving tort law and write an answer using the IRAC method by identifying and discussing Babak agreed to sell his small
Analyze the fact scenarios, involving tort law and write an answer using the "IRAC" method by identifying and discussing
Babak agreed to sell his small "Taste of India" restaurant located in Echo Park to Ang for $1,000,000 in a written contract signed by both parties. The restaurant had an open area for parking behind the building. The written contract disclosure statement from Babak did not identify any damage or defects to the property. During negotiations, Babak told Ang that, although there was no recorded deed, Babak had a written contract to use a right of way giving access to the parking area in the back of the restaurant. Babak showed a handwritten contract with the man who sells newspapers on the adjacent lot, that restaurant customers are allowed to enter through an undeveloped portion of the adjacent lot next to the restaurant, on which stood only a small wooden newspaper stand. Babak started to Ang "This written agreement with the newspaper stand owner ensures your customers will be able to continue accessing the parking behind the restaurant". Parking was very important because the restaurant was located in a heavily congested urban area where it is very difficult to park on the street. Ang paid Babak $1,000,000 and Babak deeded the building to Ang. Ang immediately renovated to build her "Dream Asian-Fusion" restaurant at a cost of $200,000. While renovating, Ang discovered foundation cracks from earthquake damage in the middle of the dining area. The cracks had recently been filled in, ground smooth, and concealed under thick dark commercial-grade carpeting. Ang also discovered that the owner of the adjacent lot was not the newspaper stand owner, but really a developer preparing to start construction of an office building, which would block all access to the restaurant parking. The developer stated they had already hand-delivered three written notices to Babakover the past 6 months before the sale, that parking access would be blocked. Ang began operating her Asian-fusion restaurant receiving great online food reviews and making a decent profit. However, a month later Ang's business decreased significantly when the adjacent lot was developed, blocking all access to the rear parking. Ang has tried to sell the building but has been unable to obtain offers of more than $700,000, due to both the structural foundation crack damage and the lack of parking space - which she truthfully discloses to potential buyers.
Analyze using the "IRAC" method.
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