James owned real estate.He leased the building to two tenants.An insurance agent leased the first floor and a law firm leased the second floor.James later sold the land to Mary,who used the entire building for her business.She discovered that there were hazardous material storage tanks buried in the land.She had to remove the tanks and then sued James and the former tenants for the cost of removing the tanks,even though none of them knew the tanks had been there.

Question

Quizplus · Accepted Answer

Under the doctrine of implied warranty of fitness, a purchaser who buys a particular piece of property for a specific use is impliedly warranted that the property is reasonably fit for that use. In this case, Mary purchased the property for commercial use, and she discovered hazardous material storage tanks that required removal. James, as the former owner, is liable to Mary for the cost of removing the tanks, as he had an obligation to disclose all known hazardous materials on the property. The former tenants, however, cannot be held liable as they were unaware of the tanks' existence. Hence option B is correct.

James Owned Real Estate