Question

Legal Principle: A contract obtained by misrepresentation is voidable at the option of the buyer.
Factual Sitution: 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 concealed and cannot be seen or have been hidden.
• B. Anupama will succeed because Anand knowingly sold the house and 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 his part of the contract.

Answer 1

The correct option is A Anupama will not succeed because she has to be careful about what she is purchasing in all concealed and cannot be seen or have been hidden.

Anand did not conceal or hide any information about the house when Anupama came to purchase the house. If Anand had done so (hide any fact/information about the house), then it would have amounted to misrepresentation, thereby allowing the buyer, i.e. Anupama to end the contract at her will. But since it was visible that the house was not in a very good condition and required repairs, is not a misrepresentation and hence Anupama will not succeed.