Bill owns a house in Seattle’s Wallingford neighborhood and has put his house for sale for $750,000. Pedro has made an offer of $760,000 along with many other offerees. Bill has accepted Pedro’s offer. Bill states that the basement has always been dry which is unusual for Seattle homes. Pedro relies on this representation in purchasing the house. Assume a valid contract (Agreement (offer and acceptance), consideration, capacity and legality). He has an inspection and nothing is troublesome so he purchases the house. The first month he is there, the basement floods. He learns that this is a common occurrence and believes that Bill has misrepresented this fact. Please discuss what Pedro’s rights might be, apply the facts to this misrepresentation, what Pedro could sue Bill for if anything, the likelihood of him prevailing, what the damages might be and then find a case which involves a misrepresentation of fact or a fraudulent misrepresentation and summarize that case as well as compare it to this one.

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