Question

Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer.
Factual Situation: Anand wants to sell his house. Anupama. approaches him with an offer to buy the house and Anand shows her the house. The house is not in a very good condition and visibly requires repairs, without which it is uninhabitable. Anand does not tell anything regarding the required repairs to be livable. Anupama purchases the house for a huge consideration. Later on when she wants to move in her things into the house to start living, she realizes the heavy repairs that the house requires urgently.

• A. Anupama will not succeed because she has to be careful about what she is purchasing in all circumstances, unless the defects are concealed and cannot be seen or have been hidden.
• B. Anupama will succeed because Anand knowingly sold the house and he should have informed Anupama about the condition of the house.
• C. Anupama will succeed because she would never have purchased the house in case she was told about the status of the house.
• D. A buyer always has the option to refuse performance of this part of the contract.

Answer 1

Answer: (A)

Anupama will not succeed because she has to be careful about what she is purchasing in all circumstances, unless the defects are concealed and cannot be seen or have been hidden.

This case is a clear example of Caveat Emptor, wherein the responsibility of the purchase decision is with the buyer, who is expected to be vigilant enough to check all the dimensions before making a purchase. Here in the question, the condition of Anand's house while Anupama's visit was clearly visible, that it requires repairs before inhabiting it. Still Anupama purchased the house as it is (with a huge consideration). Hence the ownership of the decision is with Anupama. The correct answer is A.