Helen Helper took care of Doris from the time Doris was 85 until she died at age 93. Doris had more money than she needed. She did not own a home, but rented a nice apartment in a retirement village. Doris depended on Helen for most of her daily needs like buying groceries, cooking meals, driving Doris to church, book club, parties, and doctor appointments. A month or so before Doris died, Helen convinced Doris to buy Helen’s house for $200,000, so Doris could give it to her daughter, Daisy. ALSO: In the last couple years before she died, Doris was basically healthy, but she got a little forgetful and her eyesight was failing. Helen’s house is located in an older but trendy neighborhood where many owners renovated their homes, raising the values to about $200,000, but Helen had not done any updating to her house. Doris and Helen signed a Sales Contract for the house and the Contract states that “Seller represents that the house is in perfect condition”. Doris paid $5000 as a down payment, and Helen paid $400 each for an appraisal a title report. Doris died before the inspection was done and the sale closed. In her Will, Doris left all her property to her daughter Daisy and named Daisy as Independent Executor of her estate.

1.Could there be a validly formed contract for Doris to buy Helen’s house? Explain (what are the elements of contract formation and which are present here?)

2.Daisy wants to get out of the contract and get her mother’s $5000 down payment back. What defenses to enforcement of the contract might she be able to assert (there are several)

3. Daisy might like to buy the house, but she says there is a mistake of value because it is only worth $150,000. Can she rescind or cancel the contract for this reason? Why or Why not?

4.Daisy gets the inspector’s report which, not surprisingly, shows that Helen’s house is not “in perfect condition” as stated in the contract. In fact, the foundation has big cracks in the basement that are covered up with wooden paneling, and repair cost is estimated at $50,000. What must Daisy show (remember to answer in terms of elements) to rescind or cancel the contract on the basis of fraudulent misrepresentation?

5.If Daisy wants to get damages instead of just canceling the contract, what else must she show?

Answer rating: 100% (QA)

1 Yes because both Doris and Helen contracted in writing to sell the house In addition Doris paid He... View the full answer