Problem
A. "Able hired a contractor to repair several cracks in the walls of his home. The cracks were the result of settling, but the contractor never mentioned this fact to Able. Somehow Able got the impression that the cracks were caused by green lumber. When Able later tells Baker, a prospective purchaser, about the cracks, he explains the cause as green lumber. Baker purchases the property. When additional cracks appear and Baker discovers their true cause, he sues Able for fraud. Is Able liable? Discuss."
B. "Kaye was interested in buying a large piece of land from Katzenberry, who lived nearby. Katzenberry did not want to sell the land to a buyer who would use it for commercial purposes; he asked Kaye what he planned to do with the property. Kaye told Katzenberry that he was going to build a house on part of it and probably would use the rest for a garden. This was true, but before the closing, Kaye changed his mind and made plans to build a hamburger stand next to his house. Katzenberry learned of this and refused to convey the property. Kaye sued for breach of contract; the defense claimed fraud. Would Kaye be successful?"
C. "Reilley owned a small ranch that he planned to sell. The ranch was in a rural area, and the exact boundaries were not clear. Although a survey of the ranch existed, Reilley felt that it was incorrect. As a result, he hired Gavin, a licensed surveyor, to resurvey the ranch. Reilley placed stakes in the ground where he believed to be one of the corners, and Gavin surveyed with that as the starting point. When Reilley placed the property on the market, he used Gavin's survey as the basis for the description of the property. Herman contracted to purchase the ranch on the basis of the Gavin survey. During the negotiations, Herman and Reilley walked the boundaries based on Reilley's communication to Herman. Reilley did not inform Herman of the questionable boundaries or the existence of the first survey.
After Herman took the title, he discovered that boundaries were questionable and that another survey existed. This survey indicated that the ranch was smaller than the Gavin survey indicated. Herman sued to rescind, arguing fraud in that Reilley had not informed him of the questionable boundaries and the discrepancy between the two surveys. Would Herman be successful? Support your answer."