In Order to Get Susannah to Buy His Cottage, Paul

question 70

Multiple Choice

In order to get Susannah to buy his cottage, Paul tells her that he has recently spent $100 000 in repairs that make its foundations flawless.In love with the cottage and in reliance on Paul's representation, Susannah impulsively trades her condo in the city for the cottage without asking for a home inspection.Two months after she moves into the cottage, Susannah hears a creaking noise during a windy evening.The next morning, she has a home inspector over to take a look.He tells her that there have been no repairs on the house in the last 20 years and that the foundation is in a dangerous state of disrepair.She calls Paul to try to get her condo back but finds out that he has sold the unit and has moved to Bermuda with all of his assets.In seeking orders for rescission and restitution,

• A)Susannah will most likely succeed in obtaining rescission and restitution, as Paul's misrepresentation is clearly actionable and the parties can be put back their same position by evicting the person to whom Paul sold the condo.
• B)Susannah will likely succeed, and the court will therefore award damages for breach of contract, which is the usual award granted when a party seeks rescission.
• C)Susannah will most likely fail, as Paul's misrepresentation is clearly not actionable.
• D)Susannah will most likely fail because her living in the cottage for two months is an affirmation of Paul's misrepresentation.
• E)Susannah will most likely fail because courts are unlikely to grant rescission when the rights of third parties are affected.

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Definitions:

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