Eli was anxious to sell his house because he knew it was badly infested with termites. Sydney expressed an interest in buying the property after inspecting it but before making an offer, she asked Eli whether there were any problems she should know about. Eli, elated at the thought of getting the termite-infested home off his hands, assured Sydney that the structure was sound and free of any defects. Sydney subsequently bought the house and within one month discovered that the damage caused by the termites had seriously threatened its structural soundness, requiring thousands of dollars worth of repair work. Which of the following statements is TRUE?

1. (1)Sydney can sue Eli under both tort and contract law.
2. (2)Eli cannot be held liable for his misrepresentation because he is not a professional real estate licensee.
3. (3)As there was no special relationship between Eli and Sydney giving rise to a duty of care, Eli cannot be held liable.
4. (4)Sydney's remedies are limited to those provided for under contract law.