Reference no: EM133800427
Question
During the course of January 2023, Monica bought a small house from Chandler. Unknown to Monica, a murder was committed on the premises shortly before she bought the house. At the time of purchasing the house, Monica heard rumours from local residents about the murder. Before finalising the sales agreement, Monica decides to confront Chandler about this, however, Chandler, being fully aware of the murder, denies this. After the sale and transfer of the property is finalised, Monica decides to do some renovations to the bathroom. Upon removing some of the tiles, the construction team notices that the foundation of the property is not entirely secure or level. After a laborious excavation exercise that was conducted to investigate the stability of the foundation, human remains were discovered under the house. Monica is shocked by this and, being a very superstitious person, contacts Chandler and informs him that had she known about the murder, she would not have purchased the property. Monica also wishes to cancel the sale of the property and requests a full refund of the purchase price from Chandler. Chandler refuses to refund Monica and contends that the human remains do not affect Monica's physical ability to use and enjoy the property. Monica approaches you, an attorney, for legal advice on the matter. Required: With reference to case law, fully discuss whether Monica would be able to rely on fraudulent misrepresentation to cancel the agreement of sale in the circumstances. Note to Students:
- You do not have to include a discussion on latent defects in your answer, as you may accept that Monica's use and enjoyment of the property are not necessarily affected by the uncovering of the human remains.
- Marks will be awarded for both theory and application in this question.