If we entered into a contract with a buyer who gave a false name, can we rescind the contract?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If we entered into a contract with a buyer who gave a false name, can we rescind the contract?
The sellers attempted to perform due diligence on the buyers by googling the name given, however nothing derogatory came up on that search. Subsequently, we learned his true name and determined immediately that we would have never entered into the contract had we known his true background and character. Is this material misrepresentation and does it make the contract subject to rescission with the potential to seek damages such as retention of all moneys paid to date?
Asked on May 3, 2019 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
It is fraud--a material mistrepresentation--and so would allow the seller to void the contract: to undo it as if it never happened. But if they do that, they have to return the monies paid to date, because as stated, the contract is undone as if it never existed, so there is no grounds to keep any payments or deposits. The parties are returned to their status ante quo: their respecrive status' prior to entering into the contract.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.