James and Allison are a newlywed couple who are ready to purchase their own home. Olivia, the homeowner, meets with James and Allison so she can give them a tour of the house. The couple walks toward the second floor balcony that is constructed in wood. They discuss that once they purchase the house, they plan on tearing down the balcony to build something bigger. Olivia tells them that the balcony is in perfect condition when in reality, the wood is infested with termites. Also, the roof is leaky in many places and there are some weak spots in the foundation that would be costly to repair, but Olivia does not tell the couple. James and Allison move in, and two weeks later, a storm caused leaks that damaged some items in the house. Is Olivia guilty of false pretenses?
What will be an ideal response?
Students must analyze the case and apply the elements of false pretenses to determine whether Olivia is guilty. The issue with the balcony should not matter in the decision, despite Olivia lying about its condition, because the couple was going to tear it down anyway. The leaky roof and the weak foundation would also not convict Olivia of false pretenses because she never told the couple about these issues. Silence does not constitute false pretenses. Ultimately, Olivia would not be liable.
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