Will buyer prevail on his misrepresentation defense

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Reference no: EM133926614

Assignment:

Buyer and Seller entered into a valid written and signed contract for the sale of a house for three million dollars - $50,000 to be paid right away, the remainder in specified monthly installments over two years. No realtor or attorney assisted either party. They used a standard form contract that Buyer found on the internet. Neither party read the six pages of boilerplate provisions, which included:

"Any controversy arising under this transaction will be resolved by arbitration."

Unbeknownst to Buyer, five years ago Seller had buried six of his relatives in the back yard, then built a brick barbecue and patio over the burial site.

Six months after moving in, Buyer found the bodies when he removed the barbecue and patio to install a swimming pool. Had he known of the bodies he would not have bought the house, or at least he would have demanded their removal and a substantial price reduction.

Because of the bodies, buyer stopped paying the monthly installments to Seller.

Seller sued Buyer for breach of contract, asking for the court to order Buyer to pay the remainder of the three million dollars. Buyer made a motion to compel arbitration; and Buyer alleged the defense of misrepresentation.

1. How should the court rule on Buyer's motion to compel arbitration, and why?

2. Will Buyer prevail on his misrepresentation defense? Discuss?

Reference no: EM133926614

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