Gortino, while trying to sell his house to Stein, was asked if he had ever seen or suspected termites in the house. Gortino replied that he had not and that the house was sound. Several months after Stein has purchased the house, she learned from neighbor that Gortino had not paid for soil treatment to eliminate termites.
A. Can the contract for sale be canceled because of fraud?
B. Was there a misstatement of a material fact?
C. Did Stein suffer a loss as a result of Gortino's actions?
D. Can Stein sue for damages?