Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 4

Fraudulent Misrepresentation Peggy Williams helped eighty-seven-year-old Melvin Kaufman care for Elsie Kaufman, his wife and Williams's great aunt, for several years before her death. Melvin then asked Williams to "take care of him the rest of his life." He conveyed his house to her for "Ten and No/100 Dollars ($10.00), and other good and valuable consideration," according to the deed, and executed a power of attorney in her favor. When Melvin returned from a trip to visit his brother, however, Williams had locked him out of the house. He filed a suit in a Texas state court, alleging fraud. He claimed that he had deeded the house to her in exchange for her promise of care, but that she had not taken care of him and had not paid him the ten dollars. Williams admitted that she had not paid the ten dollars, but argued that she had made no such promise, that Melvin had given her the house when he had been unable to sell it, and that his trip had been intended as a move. Do these facts show fraud? If so, what would be the appropriate remedy? Explain. [ Williams v. Kaufman, 275 S.W.3d 637 (Tex.App.-Beaumont 2009)]