Adrianna wants to purchase a ten-acre tract of land. Under what circumstances would the seller be required to divulge information Adrianna does not possess?

Answer 1

There used to be no duty to disclose, even if a party knew the other party was negotiating under a mistake. Now, however, because of changes in social attitudes about fairness, a seller who knows something the buyer does not know is often required to divulge it. There are four circumstances in which nondisclosure of a fact to Adrianna would be misrepresentation: (a) where disclosure is necessary to correct a previous assertion; (b) where disclosure would correct a basic mistaken assumption on which Adrianna is relying; (c) where disclosure would correct Adrianna's mistaken understanding about a writing; and (d) where Adrianna and the seller have a relationship of trust. The seller generally must disclose any latent defect he knows about.that Adrianna should not be expected to discover herself.