A buyer and seller in Brookline, Massachusetts have executed a Purchase and Sale Agreement (P&S) for a property at $730,000. The buyer later discovers a material defect in the property that was known to the seller but not disclosed. The buyer seeks to rescind the contract. Under Massachusetts law, which legal basis most directly supports the buyer's right to rescind?
Correct Answer
A) MGL Chapter 93A, because the seller's knowing concealment of a material defect constitutes an unfair or deceptive act
MGL Chapter 93A (the Consumer Protection Act) prohibits unfair or deceptive acts and practices in trade or commerce. A seller's knowing concealment of a material defect in a real estate transaction constitutes a deceptive act under Chapter 93A. This provides the buyer with a right to rescind the contract and potentially seek double or treble damages plus attorney's fees. Massachusetts courts have consistently applied Chapter 93A to real estate transactions involving intentional misrepresentation or concealment.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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