Question

The McAllisters had several serious problems with their house, including leaks in the ceiling, a buckling wall, and dampness. They repaired the buckling wall by installing I-beams to support it but never resolved the leaks or the dampness. When they decided to sell the house, they said nothing to prospective buyers about the problems. If asked, they stated that the I-beam had been added for reinforcement. The Silvas bought the house for $60,000 and immediately began to have problems with leaks, mildew, and dampness. Are the Silvas entitled to any money damages?a. Yes, the Silvas are entitled to damages for fraud because the McAllisters claimed the I-beams were added only for reinforcement, but cannot rescind the contract.b. Yes, the Silvas are entitled to rescind the contract due to fraud but are not entitled to damages.c. Yes, the Silvas are entitled to damages or to rescind the contract due to fraud, and possibly both.d. No, the Silvas are not entitled to any remedy because the case does not constitute frau

Answer 1

The best answer to the question: Are the Silvas entitled to any money damages? Would be, C: Yes, the Silvas are entitled to damages, or to rescind the contract due to fraud, and possibly both.

Step-by-step explanation:

The reason for this is that the McAllisters sold their house to the Silvas as if the house had not had any issues whatsoever, even though they knew for a fact that it did, that these issues were pretty serious and that they would cost the Silvas quite a bit of money to repair. Even worse, they hid the information and sold the house at a price that would be expected for a house in good condition. Furthermore, when prospective buyers asked about certain characteristics of the house, like the I-beams, the McAllisters just said that the structure was for reinforcement, and did not mention anything else. This constitutes a fraud and it cost the Silvas quite a bit. Therefore, the Silvas will have the right to rescind the contract, get payment for damages and even both.