Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 2

Rescission. Farrokh and Scheherezade Sharabianlou agreed to buy a building owned by Berenstein Associates for $2 million. They deposited $115,000 toward the purchase. Before the deal closed, an environmental assessment of the property indicated the presence of chemicals used in dry cleaning. This substantially reduced the property's value.
Do the Sharabianlous have a good argument for the return of their deposit and rescission of the contract? Explain. [ Sharabianlou v. Karp, 181 Cal.App.4th 1133, 105 Cal. Rptr.3d 300 (1 Dist. 2010)] (See Consideration.)