Question
Jake agrees to sell his house to Thomas for $250,000. Jake and Thomas agree to all of the terms of the sale, and they put
Jake agrees to sell his house to Thomas for $250,000. Jake and Thomas agree to all of the terms of the sale, and they put their agreement into writing. During the negotiations that led up to their agreement, Thomas asked Jake if the roof leaked, and Jake said,"The roof is watertight. It has never leaked."When Jake made that statement, he believed that the roof never leaked. It turns out he was wrong. Two years ago, before Jake owned the house, the roof leaked during a heavy rainfall. Had Thomas known this information, he would not have contracted to buy Jake's house. If Thomas learns about the earlier leak after the sale, which of the following best describes his rights if he wants to have the contract rescinded and get his money back?
Thomas cannot obtain the remedy of recission because Jake did not intentionally provide false information to Thomas.
Thomas cannot obtain the remedy of recission because the leak is minor, and therefore not "material."
Thomas may obtain the remedy of recission if he alleges a cause of action based on misrepresentation.
Thomas cannot get the remedy of recission because he has ratified the contract by completing the sale.
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