613 P.2d 608 (1980)
After closing the sale, the buyers discovered a shortage in the highway frontage and not as much gravel on the property as had been indicated by the sellers.
- The court held that an innocent misrepresentation could be the basis for rescinding a contract.
- The court found it was relevant whether the buyer relied on the statements, whether the statements were material to the transaction, and whether their reliance was justified.
- The court held that the buyer could rely on material representations made by the seller and was not obligated to ascertain whether the representations were truthful.
- The court held that the trial court erred in finding that the buyers did not rely on the sellers' statement that there was gravel on the property.
- The court found that the statements regarding highway frontage and gravel content were material.
- The existence of gravel deposits was an important consideration by a reasonable person in developing a piece of property.
The decision was reversed and remanded.
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