Contracts
What is 'fraud in the inducement' in a Pennsylvania real estate contract and what remedy does it provide?
AFraud where a party is induced to sign a contract by promises that were never intended to be kept, rendering the contract voidable at the defrauded party's option✓ Correct
BA criminal charge that automatically voids the real estate contract
CFraud that occurs when a buyer induces a seller to accept a lowball offer
DA PREC violation resulting in license suspension but not contract rescission
Explanation
Fraud in the inducement occurs when one party makes a material misrepresentation of fact, known to be false, intending the other party to rely on it, and the other party does rely on it to their detriment. In Pennsylvania real estate, this might include concealing known defects, misrepresenting square footage, or falsely claiming no past flooding.
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