The crack in the foundation a material fact in transaction

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Reference no: EM131637424

Todd and Yolanda Robinson are selling their house. One of reasons they are selling their house is that they have noticed that a large crack is developing in their foundation. Their basement also floods when it rains. They have decided to sell the home themselves and not hire a real estate agent. They are concerned that if a prospective buyer walks through the basement and sees the crack, they will begin asking questions about flooding and then not purchase the house. So, they decided to put a large cabinet in front of the crack in the basement so that it will not be visible when buyers walk through the basement, and they tell prospective buyers that the cabinet stays with the house. They receive a favorable offer and sell the home. Two months later there is a heavy rain in their community which caused a bridge to wash out. Three months after this, the Robinsons get a letter from an attorney who represents the buyers. The letter states that the buyers intend to sue the Robinsons.

Were the actions of the Robinsons fraudulent? Was the failure to disclose the crack in the foundation a material fact in the transaction? Identify all elements of fraudulent misrepresentation, and whether it applies in this situation.

Answer must be short essay like 2 paragraphs

Reference no: EM131637424

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