Part III Nevertheless, Keisha loved Colorado so much that she wanted to move the
ID: 419503 • Letter: P
Question
Part III Nevertheless, Keisha loved Colorado so much that she wanted to move there full-time. Andrew sold a condo he owned in Colorado to Keisha. Before the sale, Andrew told Keisha there was a golf course, swimming pool and an exercise center on the condo grounds for use by the residents. Andrew knew that none of these facilities existed. Keisha, however, believed Andrew’s statements and bought the condo without seeing it for $200,000, although it was only worth $125,000. Keisha learned of the errors in Andrew’s statements and sued him for fraudulent misrepresentation. Analyze and describe any remedies available to Keisha because of Andrew’s misrepresentation
Explanation / Answer
The elements of fraudulent misrepresentation includes
1.A misrepresentation of material facts or conditions with knowledge that they are false or with reckless disregard of the truth
2. An intent to induce the other party to rely on the misrepresentation
3. A justifiable reliance on the misrepresentation by the deceived party
4. Damages suffered as a result of the reliance
5. There is a connection between the misrepresentation and the injury suffered
In this case Andrew has sold the condo he owned in Colorado by saying that there is a golf course, swimming pool and an exercise center on the condo grounds for use by the residents with the knowledge that these arguments are false. Andrew had intent to induce Keisha to rely on this misrepresentation of amenities and buy the condo. Keisha has relied on the misrepresentation and bough the condo. As a result suffered damages as she bought only $1,25,000 property for $2,00,000 and the injury happened as she relied on the misrepresentation. Hence the case satisfies all the elements of fraudulent misrepresentation and the remedies available to Keisha include a rescission of the contract or damages. Rescission of the contract would restore Keisha to the pre-contractual positions. If she wants to retain the property in condo as she loves Colorado so much, Keisha can opt for damages and claim the actual damages of value $75,000 that occurred due to misrepresentation.