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MMLU / A married couple signed a contract to sell their home, and in it they affirmed…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A married couple signed a contract to sell their home, and in it they affirmed that they did not know of any structural defects in the home. Prior to the date of closing, the purchasers noticed peeling paint and plaster erosion in a corner of a ceiling near the fireplace. They also noticed water marks lining the interior wall in the basement. The sellers explained that these were old problems that had been fixed and they just didn't get around to doing the cosmetic repairs and painting. The parties went to closing and finalized the deal. On their first week in the house, the purchasers found a virtual flood plain in their basement and they confronted water gushing in at the corner areas near the fireplace. They hired a contractor who reported the need for extensive structural repairs. They sued the sellers for fraud, misrepresentation, and implied warranties of habitability, and they asked for the funds to fix the property. Do they have a valid cause of action against the sellers?

choices

  1. No, because the facts do not indicate an intention to deceive by the sellers.
  2. No, because buyers must always buy a used house in "as is" condition and they assume the risk of any hidden defects under the caveat emptor rule.
  3. Yes, the evidence indicates that the sellers made knowingly false representations of material fact to induce the buyers to rely thereon and buy the property.
  4. Yes, the sellers breached the contract of sale and must pay damages.

subject

professional_law

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Source and history

task_id
4ea37f3e-6f99-5687-bad7-955a6aa04713
task_key
all--test--4ea37f3e-6f99-5687-bad7-955a6aa04713
task_revision_id
1
config / split
all / test

Official source

initial import