James entered into a contract to sell his house to Mikhael.James knows that the house has a bad termite infestation that significantly reduces the value of the house.However,the topic of termites never came up and James did not volunteer any information about the termites.Mikhael is not aware of the termite problem.Under the law of most states,has legal misrepresentation occurred here?
A)No,because James made no statement that was false.
B)No,because a seller does not have a duty to reveal all faults.
C)Yes,because a seller must always inform a buyer about defects that are not obvious.
D)Yes,because James is concealing the termite infestation from Mikhael.

Question

Quizplus · Accepted Answer

James' failure to volunteer information amounts to a nondisclosure of fact.Most states,in the case of real estate,hold that a seller who knows about a latent (hidden)defect that materially affects the value of the property he is selling has the obligation to speak up about this defect.

James Entered into a Contract to Sell His House to Mikhael.James