Suppose you offer your car for sale. Your car was submerged up to the windows in a flood three years ago, but the car currently seems to be operating fine for you.

A potential buyer asks you, “Has your car ever been in an accident?” If you say “no,” have you committed a misrepresentation? What must happen for a fraudulent representation to occur?

Suppose the person instead asks you “Has your car ever been damaged?” What other types of misrepresentation are there?

If a potential buyer does not ask you any questions regarding the condition of your car, must you voluntarily disclose that your car has been in a flood? Should you? Could a misrepresentation occur by remaining silent?

Would this person be able to rescind a contract due to a misrepresentation or mistake?

Answer rating: 100% (QA)

If a potential buyer asks whether your car has ever been in an accident and you say no without discl... View the full answer