ContractsIntermediateAlaska Exam

An Alaska seller fails to disclose a material defect in a property. After closing, the buyer discovers the defect and sues. The buyer's cause of action is MOST LIKELY:

ABreach of fiduciary duty, as a general rule
BFraudulent or negligent misrepresentationCorrect
CSpecific performance
DUnjust enrichment

Why Fraudulent or negligent misrepresentation Is Correct

Answer B: Fraudulent or negligent misrepresentation

If a seller fails to disclose a known material defect, the buyer may have a claim for fraudulent misrepresentation (if the seller knew and intentionally concealed) or negligent misrepresentation (if the seller should have known). Remedies can include rescission, damages, or both.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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