A Massachusetts buyer enters into a purchase and sale agreement and pays a $25,000 deposit. The agreement contains a standard liquidated damages clause. Before closing, the buyer discovers that the seller made multiple knowing misrepresentations about the property's rental income history, inducing the buyer to offer a price $60,000 above fair market value. The buyer wants to cancel the contract and recover more than just the deposit. Under Massachusetts law, which combination of legal theories provides the buyer the BEST chance of recovering the full $60,000 overpayment plus attorney's fees?

Correct Answer

B) Fraudulent misrepresentation and Chapter 93A, because fraud in the inducement can void the contract and Chapter 93A provides enhanced damages and attorney's fees for willful deceptive conduct

The buyer's best legal strategy combines fraudulent misrepresentation (which can void the contract and entitle the buyer to rescission and restitution) with a Chapter 93A claim (which provides double or treble damages and attorney's fees for willful deceptive conduct). Fraudulent misrepresentation in the inducement renders the contract voidable by the buyer, allowing recovery of the deposit plus any damages caused by the fraud. Chapter 93A's enhanced damages provisions can multiply the $60,000 actual overpayment damages up to $180,000 if the court finds the conduct was willful and knowing, plus attorney's fees. This combination bypasses the liquidated damages clause because fraud in the inducement attacks the validity of the contract itself — the liquidated damages clause cannot protect a seller who fraudulently induced the buyer to enter the contract.