John and Mary are thinking of buying a house. They see one they like and arrange to view it. The current owner, Emelda shows them over the house stating, "I've owned this house for 20 years, and it is completely sound. There are no problems." In fact, as John and Mary discover later, the house is infested with termites. If Emelda did know there were termites and was desperate to sell, this would be an example of:

Question

Quizplus · Accepted Answer

Emelda's statement that there were no problems with the house was not just false, but appears to have been made with the intent to deceive John and Mary into buying the house. This is an example of fraudulent misrepresentation.

John and Mary Are Thinking of Buying a House