• Employer - Bridget Inc.
• Contract Dispute
• ISSUE: Duty to Disclose Information

Bridget Inc. was looking for a new warehouse big enough to accommodate their new company-provided daycare center for employee's kids. Bridget's CEO, Chuck, was searching for business properties in MLS in Michigan and came across a perfect space belonging to Laura Jones, Attorney. Chuck did not know but the warehouse was widely reported to be haunted. Laura had even made the front page of the local paper when she reported the haunting to the local paper and the "In the News Legal Journal" last year.

During contracting for the warehouse, Laura failed to tell Chuck about the newspaper and the journal articles. The parties signed a contract for sale and the allowed three days for recission passed.

Chuck, excited for the new company, bought furniture for the daycare center and even hired a manager to run the center. When Chuck learned of the stories and the haunting, on behalf of the company sued Laura for rescission and damages. Laura argued the suit was ridiculous because there was no such thing as ghosts and, she was planning an exorcism prior to the closing anyway.

1. Is there a valid contract? Why or why not?
2. Did Laura have a duty to disclose the haunting to Chuck and Bridget's Inc.?
3. Will Chuck and the company prevail in his lawsuit, why or why not?