Contracts
A Rhode Island buyer's offer is accepted, but later the seller discovers the buyer included a fraudulent income statement to qualify for the home inspection contingency. The seller may:
AProceed with the sale as the contract is already formed
BSeek rescission of the contract based on fraud and misrepresentation✓ Correct
COnly reduce the price
DReport the buyer to the DBR
Explanation
Fraudulent misrepresentation by a party is grounds for the injured party to rescind the contract and seek damages. A contract induced by fraud is voidable by the defrauded party.
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