Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Kritski is in the business of flipping houses.He purchases houses in foreclosure sales and after making moderate, generally cosmetic changes, he sells the house

Mr. Kritski is in the business of flipping houses.He purchases houses in foreclosure sales and after making moderate, generally cosmetic changes, he sells the house for a higher price.

A recently purchased house had wallpaper from the late 70's throughout and so Mr. Kritski removed it all, thinking he would simply paint the walls.

After removing the paper, it was discovered there were several large cracks in the walls.Mr. Kritski hired a structural engineer who informed him the cracks were due to a fault in the foundation, and it would cost $90,000 to repair it.

Mr. Kritski decided to simply patch the cracks with spackle and paint over them instead of repairing the foundation and placed an ad in the paper for a "sturdy ranch house which would provide many years of enjoyment."

Marlon saw the advertisement and came to look at the home.After expressing interest, Marlon hired a professional home inspector who he paid $750 to inspect the home.The home inspector issued a report which noted several small defects but in no way mentioned any structural defects.Marlon also asked Mr. Kritski if he knew of any other issues in the house to which he replied "this house has good bones."

Marlon paid for the property, in a standard real estate closing, and moved into his new home.One month later, when replacing some baseboard molding, a section of the wall crumbled and fell on him, causing injury and damaging his valuable property.Upon investigation, Marlon discovered the structural issues, as well as the clause in small print at the end of the inspector's contract saying: "Inspector is not liable for any structural defects, you should hire an engineer to evaluate the structural components of the home."

Q: Discuss any contract claims Marlon may have against any party.Discuss defenses to his claims and possible damages.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

7th edition

978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432

Students also viewed these Law questions

Question

1. Have a 2-week arrangement; then evaluate.

Answered: 1 week ago