Robert signs a purchase agreement to buy a home in Spartanburg, South Carolina, after the seller's agent tells him the basement has never flooded, which Robert later discovers was knowingly false. Robert wants to get out of the contract. Which legal basis would most likely allow Robert to void the contract under South Carolina law?
Correct Answer
C) Fraudulent misrepresentation, which makes the contract voidable at Robert's option
Under South Carolina law, a contract induced by fraudulent misrepresentation — a knowingly false statement of material fact made to induce another party to enter the contract — is voidable at the innocent party's option. Because the seller's agent knowingly made a false statement about the basement flooding, Robert may elect to rescind the contract on the ground of fraudulent misrepresentation. This is a recognized basis for voiding a contract that would otherwise appear to have all required elements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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