BUSAD 120 Lecture 17: Busad 120 - LTR 17
Document Summary
A person wanted to buy a piece of land on which to build a home. Mr. malik, the seller of the lot, claims he had not built on it because his family was now grown up. Fraud (misrepresentation): failure to disclose problems with the lot, malik remained silent about issues relating to building on the land: this was the 3rd time malik has attempted to sell the land. Vendor must disclose all known issues concerning the property to potential buyers. Fyi: to be safe, buyers of real estate should always have a notary check the zone-age of the lot and research the history of the property with the city, prior to agreeing to buy. The purchaser (giroux) was entitled to annul the sales agreement on the grounds of fraud perpetrated by the seller (malik) Court found malik guilty and that he committed fraud of omission: ccq s. 1401, the sale was annulled for fraud ccq s. 1407.
