Contractural agreement

Contractural agreement
Howard Homeowner discovered that the city has plans to put in a garbage dump across the street which would substantially decrease the value of his home. As soon as he discovered this information he put his home up for sale. Betty Buyer visited the home the next day and fell in love with the ranch style home and purchased it on the spot for $200,000. Soon after Betty Buyer moved in, the city moved in across the street and began to operate the garbage dump. Because of the unsightly and putrid dump, home values, including Betty Buyer’s home, dropped in value by 40 percent.

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Is Betty Buyer stuck with the house?

Is there any way Betty Buyer can get out of the home purchase or be compensated for her loss?

What obligation, if any did Howard Homeowner owe to Betty Buyer?

Would any of your answers change if Betty Buyer had specifically asked Howard Homeowner if he knew the plans for the empty lot across the street?


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