Contracts

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
BFraudulent or negligent misrepresentation✓ Correct
CSpecific performance
DUnjust enrichment

Explanation

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.

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