A seller in Stockton, California, signs a purchase agreement and then discovers the buyer made a material misrepresentation about their financial qualifications on the offer. The seller wants to void the contract. Under California Civil Code §1566, which type of mistake or fraud would best support the seller's claim for rescission?
Correct Answer
A) Fraud in the inducement by the buyer regarding a material fact that influenced the seller's consent
Under California Civil Code §1566 and §1572, consent obtained through fraud in the inducement is not freely given and may be rescinded. The buyer's material misrepresentation about financial qualifications directly influenced the seller's decision to accept the offer, making it actionable fraud that supports rescission.
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