Your answer must include an explanation of contract law and what constitutes a valid contract, whether there is a duty to disclose (you can find this by researching your HOME state on this issue) and, whether Chuck will be successful or not. Include Sources and...make some good arguments for your position!

• Employer - Widget's Inc.
• Contract Dispute
• ISSUE: Duty to Disclose Information

Widget's Inc. was looking for a new warehouse big enough to accommodate their new company provided day care center for their employee's kids. Widget's CEO, Chuck, was searching business MLS reports in Michigan and came across a facility belonging to Lori Baggot, Attorney. Chuck did not know but the warehouse was widely reported to be haunted. Lori had even made the front page of the local paper when she reported the haunting to the local paper and the "In the News Legal Journal" last year.

During contracting for the warehouse, Lori failed to tell Chuck about the newspaper and the journal articles. The company bought furniture for the day care center and even hired a manager to run the center prior to the closing and moving in. When Chuck later learned of the stories, he sued Lori for rescission and damages. Lori argued the suit was ridiculous because there was no such thing as ghosts and, she was planning an exorcism prior to the closing anyway.

1. Is there a valid contract?
2. Did Lori have a duty to disclose the haunting to Chuck and Widget's Inc.?
3. Will Chuck prevail in his lawsuit or not?

Answer rating: 100% (QA)

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