Jaime has agreed to buy Steve's 4x4 truck.When Steve used the truck last,it ran quite well,so he says "it is in good condition." Unfortunately,the truck sat in the humid weather for some time and the head gasket had rotted away to where the truck won't run.What,legally,should Jaime do?
A)nothing,since statements of opinion do not amount to misrepresentation
B)sue for breach; the contract was corrupted by undue influence
C)promptly demand rescission of the contract
D)sue for fraudulent misrepresentation
E)nothing,since this is a clear case of caveat emptor

Question

Quizplus · Accepted Answer

Jaime should promptly demand rescission of the contract. While Steve's statement about the truck being in good condition may be considered an opinion, the fact that the head gasket had rotted away to the point where the truck won't run is a material fact that should have been disclosed. Jaime can argue that Steve fraudulently concealed the fact, and should therefore be entitled to rescission of the contract.

Jaime Has Agreed to Buy Steve's 4x4 Truck