Sandra receives the Seller's Disclosure Statement for a Flint home two days after signing the purchase agreement. The disclosure reveals the home has a history of lead pipe issues. Sandra wants to rescind. She provides oral notice to her agent within 72 hours of receiving the disclosure. The seller argues the rescission is invalid. Who is most likely correct under the Michigan Seller Disclosure Act?
Correct Answer
A) The seller is correct because rescission under the Michigan Seller Disclosure Act must be in writing
Under the Michigan Seller Disclosure Act (MCL 565.957), a buyer who wishes to rescind a purchase agreement after receiving the Seller's Disclosure Statement must provide written notice of rescission within 72 hours. Oral notice does not satisfy the statutory requirement. Even though Sandra communicated her intent within the time window, the failure to provide written notice means the rescission is not valid under the Act, and the seller's objection is well-founded.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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