Tom Clawson is buying a home from Deidre Davidson. Tom asked for a termite report prior to closing on the house but after the contract had been signed by both Tom and Deidre. Deidre contacted Ace Exterminators. Ace's representative found evidence of termite infestation and his report disclosed the infestation. Deidre then called Bugs-R-Us and asked for another termite inspection. Bugs-R-Us's representative said there was not termite infestation and issued a clean report to Deidre, which Deidre then gave to Tom. Shortly after moving in, Tom noticed some suspicious tracks along the frame of the garage. Tom called the first name in the phone book, Ace Exterminators. Ace's representative arrived and said he did not need to do an inspection and furnished Tom with the report he had given to Deidre. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Deidre committed fraudulent misrepresentation by providing Tom with a clean termite report from Bugs-R-Us, knowing that a previous report from Ace Exterminators had found evidence of termite infestation. This act of knowingly providing false information to Tom about the condition of the house constitutes fraudulent misrepresentation.

Tom Clawson Is Buying a Home from Deidre Davidson