A buyer in Glendale enters into a C.A.R. RPA and removes all contingencies using the Contingency Removal (CR) form on day 15. On day 22, the buyer discovers a material defect that the seller failed to disclose as required by the Transfer Disclosure Statement (TDS) under Cal. Civil Code §1102. Can the buyer still cancel?
Correct Answer
C) Yes, because the seller's failure to disclose under Cal. Civil Code §1102 is a separate legal right independent of contingency removal
A seller's statutory obligation to disclose material facts under Cal. Civil Code §1102 (TDS) is independent of the contractual contingency removal process. If the seller failed to disclose a known material defect, the buyer may have grounds for rescission based on the statutory violation, regardless of having removed contractual contingencies.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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