A buyer enters a purchase agreement for a California condo after the seller provides written documentation overstating the unit's square footage by 200 square feet. The seller knew the figures were false at the time of disclosure. Which legal concept gives the buyer the right to cancel the contract?
Correct Answer
B) Fraud in the inducement, because the seller knowingly misrepresented a material fact to obtain the buyer's agreement
Under California Civil Code §§1571–1572, fraud occurs when a party intentionally misrepresents a material fact to induce another to enter a contract. Square footage is a material fact affecting value and the buyer's decision to contract. Because the seller knowingly provided false figures, this constitutes fraud in the inducement, rendering the contract voidable at the buyer's election under Civil Code §1566.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Contracts Question
Background Knowledge for Contracts
Real World Application in Contracts
Related Topics & Key Terms
Key Terms:
More Contracts Questions
An offer to purchase real estate is terminated by all of the following EXCEPT:
Kansas REALTORS provides:
Johnny purchases a house, doesn't want furniture left behind. He signs Tuesday, changes mind Thursday, calls agent to add furniture to contract. What is this?
Which of the following is required for a valid contract in California?
Alaska REALTORS provides:
- → Earnest money in Kansas must be:
- → A buyer seeks specific performance after a seller defaults on an Illinois residential purchase contract. Which statement most accurately describes how Illinois courts treat specific performance as a remedy in real estate disputes?
- → Kansas requires disclosure of:
- → An Illinois purchase contract states that upon mutual release, the earnest money of $15,000.00 will be divided with the seller receiving 60% and the buyer receiving the remaining 40%. The seller's share would also be subject to a $500.00 administrative processing fee deducted from the seller's portion before disbursement. How much would the seller net after the processing fee?
- → An Illinois exam-prep workbook gives this calculation. Quinn Bennett signed an Illinois purchase contract in Bloomington for $610,000.00. The contract requires earnest money equal to 1.0% of the price, and the parties later sign a release allowing the seller to keep the earnest money as liquidated damages. How much earnest money is involved?
- → Vermont closings typically involve:
- → In June 2026, Riley Monroe receives a counteroffer and asks what generally happens to the original offer. What is the most accurate answer under current Illinois rules?
- → Pennsylvania's Real Estate Recovery Fund provides:
- → Earnest money (down payment) in NY is typically held by:
- → Oregon carbon monoxide alarm requirements:
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A seller cancels a 6-month exclusive listing agreement with a California broker after only 2 months. Which of the following BEST describes the seller's legal obligation?
Next Question
A licensed California contractor completes a $14,500 kitchen remodel under a verbal agreement. The homeowner refuses to pay, arguing the contract is unenforceable because it was never put in writing. Under California law, what is the MOST likely outcome regarding the contractor's ability to recover?