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Realex Ltd Is Active in Commercial Real Estate and Is

Question 6

Multiple Choice

Realex Ltd is active in commercial real estate and is looking to buy several properties for different purposes. Realex makes three purchases in the span of a week. In which of the following scenarios can the contract be rescinded for misrepresentation?


A) A car dealership. Realex wishes to turn the building into a supermarket and asks Hannah, its current owner, whether that would be possible. Hannah replies that that wouldn't be a problem, although the building has never been used for retail purposes before.
B) A hotel. Realex wishes to let it as luxury apartments. Geoffrey, a lawyer and its current owner, is asked whether any planning permission would be needed before doing so and he replies 'not to my knowledge', although he has never bothered to check.
C) A restaurant owned by Yolanda. A year prior to the sale, the interior was completely redecorated. In the process of those redecorations, the contractor unknowingly painted over and concealed dry rot in the walls near the lavatories. Realex decides to renovate the interior and discovers the dry rot.

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