|
First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
|
6. Misrepresentation |
|
6.4. Deciding to avoid (rescind) the transaction |
|
Read the facts and the question and then choose the best answer. A is a farmer. B, a neighbour, asks if A wants to purchase B's land. B says it is prime land, capable of sustaining 200 head of cattle, with a permanent stream providing water. Relying on this, A purchases the land. The next year it becomes clear that, without supplementary feeding in winter, the available grazing can sustain 100 head of cattle at most. Worse still, the stream runs dry for weeks at a time. A complains to B, but B tells A that it has just been an unusually bad rainy season. The next year things are no better and, two years after buying the land, A wants to avoid the contract and recover the purchase price. Because of overgrazing, the land is in poorer condition than when A bought it. Assuming that A can establish either a deliberate or negligent misrepresentation by B, is it too late for A to avoid the contract? |
|
|
|
|