A buyer in California purchases a home in Redwood City relying on the seller's statement that the roof was replaced two years ago. After closing, the buyer discovers the roof is actually 15 years old and leaking. The buyer wants to pursue rescission. Under California Civil Code §1572, which element must the buyer prove to establish fraud?
Correct Answer
B) The seller made a false representation of a material fact, knew it was false, and intended the buyer to rely on it
Under California Civil Code §1572, fraud requires: (1) a false suggestion or suppression of a material fact, (2) knowledge of the falsity (or assertion without knowledge), (3) intent to induce the other party to act, and (4) actual reliance by the injured party resulting in damage. The seller's false statement about the roof replacement meets all four elements.
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