Exciting Real Estate Deal: Hidden Truth Unveiled!

What impact does David's silence about the soil condition have on the contract?

a. Renders the contract voidable at Ruth's discretion.

b. Does not affect the validity of the contract.

c. Entitles Ruth only to monetary damages.

d. Makes the contract a case of a mu.

Answer:

David's silence as to the soil condition renders the contract voidable at Ruth's discretion. The correct answer is option a.

David's silence regarding the subsurface soil condition, despite being aware of it and knowing that it would prevent the construction of a high-rise commercial building, can be seen as a form of fraudulent misrepresentation.

By failing to disclose the condition to Ruth, David withheld important information that could have influenced Ruth's decision to enter into the contract.

In this scenario, Ruth was not aware of the soil condition and did not make any inquiries about it. Therefore, David had a duty to disclose the information since it was not readily discoverable through normal inspections or evaluations.

Ruth has the right to consider the contract voidable, meaning she can choose to proceed with the contract or rescind it due to the fraudulent misrepresentation by David.

The correct answer is option a.