Question

Colleen sold a house to Ben for $300,000. Before selling the House, Colleen forgot to tell Ben about a leaky faucet in a little-used sink in the basement, which would cost about $30 to fix. Ben inspected the house, but didn't notice the faucet. Later, Ben wanted to rescind the deal on the basis of fraud or misrepresentation because of the leaky faucet. Which of the following is the best reason why Ben cannot rescind?

A) Because Colleen made no statement about the faucet.B) Because Ben's did not rely on any false statement.C) Because the condition of the faucet is not material to the contract.D) Because Colleen did not conceal the condition of the faucet.

Answer 1

Option C. Because the condition of the faucet is not material to the contract.

Step-by-step explanation:

The reason is that Colleen can not rescine as Ben has no intention of benefiting from the concealment of the $30 faucet cost and does not represents a material value of the house, which is thousands of times greater in value. So concealing $30 issue of almost half million worth house has no point and is not material amount so Colleen will have to perform the contract.