The appellants, a real estate agent and brokerage, appealed a trial judgment granting rescission of an agreement of purchase and sale and the return of a $50,000 deposit to the respondent purchaser.
The appellants had negligently misrepresented the size of the home as 2,000-2,500 square feet, when it was actually 1,450 square feet.
The appellants argued that the purchaser's physical inspection of the property displaced his reliance on their misrepresentation.
The Court of Appeal dismissed the appeal, holding that inspection does not absolutely displace reliance in law, and the trial judge correctly considered contextual factors including the substantial discrepancy in size and the purchaser's inexperience.