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Theresa placed a $10,000 deposit on, and entered into, a contract for purchase of a two-year-old residence. The contract contained a provision that the roof
Theresa placed a $10,000 deposit on, and entered into, a contract for purchase of a two-year-old residence. The contract contained a provision that the roof be watertight and included a requirement that seller repair the roof to a watertight condition, if necessary. Before paying the remaining $20,000 deposit, Theresa asked about stains on the walls which sellers said were from wallpaper glue. Theresa then paid the balance, for a total deposit of $30,000. Several days later, Theresa entered the house following a heavy rain and found water "gushing" into the house. Seller's contractor said the roof could be made "watertight" for $500, but buyer's contractor said the roof had failed, necessitating a replacement roof for $10,000, and repairing water damage required another $10,000. Theresa elected not to close and sued sellers for breach of contract, rescission of the contract, fraud and misrepresentation, and return of her deposit. Based upon your reading of Hess, will Theresa get out of the contract and get her deposit back? a. No. There is no duty to disclose under these sets of facts. b. Yes. This is fraud in the inducement to enter into the contract and the sellers had a duty to disclose the roof problems before entering into the contract. Theresa will win based upon the reading in Hess. c. No. Theresa could have by ordinary diligence discovered the issue with the roof. d. Yes. The seller of real estate has the duty to disclose all information in all cases
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