Robert is purchasing a home in Nashville, Tennessee. After the purchase contract is signed, the seller provides the Tennessee Residential Property Condition Disclosure form revealing a history of basement flooding. Robert had not received this form before signing the contract. Robert now wants to exit the transaction. Under Tennessee law, how long does Robert have to rescind the contract after receiving the disclosure?
Correct Answer
B) Three business days from receipt of the disclosure form
Under the Tennessee Residential Property Condition Disclosure Act, Tenn. Code Ann. § 66-5-201 et seq., when a seller provides the mandatory disclosure form after a purchase contract has been executed, the buyer has three business days from receipt of the disclosure to rescind the contract without penalty. This right exists because the buyer did not have the benefit of the disclosure information before agreeing to the contract terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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