Question

(Business law)

Jennifer decided to sell her large recreational vehicle (RV). Considerable portions of the RV floor had suffered termite damage and this, in turn, had led to some rotting. Before dealing with any potential buyers, Jennifer decided to purchase several small area rugs and place them throughout the RV, including over all the areas that had termite damage. “I’m entitled to do any kind interior redecorating that I see fit. If a buyer is too stupid to look under the rugs to see what’s going on, well that’s not my problem,” she thought to herself. Soon thereafter, Jordan purchased the trailer from Jennifer. At no time during negotiations did Jennifer disclose the termite damage nor did Jordan make any inquiries. Jennifer did say, however, that she loved the RV and that that it had never given her a moment’s worry. Jordan has recently found the termite damage and is appalled.

In 500 words or less, referencing the material in the course:

1. Can Jordan successfully sue Jennifer?

2. On what basis?

3. Would it make a difference if there was an entire agreement clause in the contract?

Answer 1

1. Yes, Jordan can sue Jennifer for not disclosing the fact that the RV is not in good form or defected.

2. As per the contract act, if any condition is not disclosed in the contract about the product and it is material for the buyer which can change the mind of buyer to purchase the item or not,it will be considered as fraud from the seller that he intensionally does not disclosed the fact. This will be the liability of the seller if it is self detected by buyer after purchase.

3. It is also further disclosed that if the contract covers the special agreement clause for such damages or defect being discussed between the buyer and seller as per the contract,then the buyer does not have right to sue the seller for such defect because it was already discussed between them. So, Jordan can't sue Jennifer for the defect if the contract includes any agreement clause for that.