Melissa Harrison, a realtor, sells a house to the Smiths.Before the sale is finalized, Mr.Smith asks Melissa for details of repairs the house has undergone over the years.Melissa gives him details of minor repairs but hides all documents regarding a major plumbing defect that was repaired last year.Three months after the Smiths moved in, the defect reappeared that caused the first floor to flood, damaging their expensive carpet and furniture.Melissa is liable for which of the following frauds?

Question

Quizplus · Accepted Answer

Melissa committed fraud by concealment by hiding information about a major defect in the plumbing system, which caused damage to the Smiths' house and property. The other options do not apply in this case - fraud in the inception refers to misrepresenting the nature of the contract, fraud in the inducement pertains to inducing someone to enter a contract through dishonesty, and fraud in the factum involves deceiving someone about the very nature of the transaction.

Melissa Harrison, a Realtor, Sells a House to the Smiths