Reed vs King GROUP 4 CATHY SCHUKAR MIGUEL

Reed vs. King GROUP #4 CATHY SCHUKAR MIGUEL HIDALGO YIBO CHEN KELLY ADAM VERA BARINOV

Facts �Dorris Reed bought a house from Robert King for $76, 000. �A woman and her four children had been murdered in the house that Reed bought ten years earlier. �King and his real estate agent knew of this and allegedly knew that the event had materially affected the market value of the house.

Facts �King and his real estate agent said nothing to Reed about the murders and King asked a neighbor not to inform King of them. �After the sale, neighbors told Reed of the murders and informed her that the house was consequently worth only $65, 000. �Reed brought action against King and his real estate agent, alleging fraud and seeking rescission and damages.

Facts �The complaint was dismissed. �Reed appealed.

Point of View

Point of View

Point of View

Issues ☺Does Reed’s pleading state a cause of action? ☺Was there an enforceable contract? ☺If not, was that contract voidable or void by the defrauded party? ☺In other words, was the contract a Fraud in the Execution or a Fraud in the Inducement? ☺Was the misrepresentation in this case also material? ☺Is it likely to induce a reasonable person to manifest assent? ☺Did the maker know that it would be likely to induce the recipient to do so?

Requirements of a Contract � Four (4) basic requirements � Absence of invalidating conduct (poison pills) An Offer � Essentials of an offer: communication, intent, and definiteness Fraud � Fraud in the execution � Fraud in the inducement False Representation Fact Materiality Knowledge of Falsity and Intention to Deceive Justifiable Reliance

Wanna Dig deeper, uh? �Similar Cases �Finding… �Related Laws in Other Countries �China: Law of the People's Republic of China on the Protection of Consumers' Rights and Interests �Others… Finding… Will be here soon…

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Our Judgment