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Source Defenses Complete Delaware Bar Exam Topic Index List Matched to this deck.

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0 tracked cards Delaware Essays

Buyer agreed to purchase a laundromat. During due diligence, Buyer asked Seller, "Are there any permit or licensing problems that would stop me from operating on day one?" Seller answered, "No." Seller had received a county notice two days earlier suspending the laundromat's wastewater permit until expensive filters were installed. Buyer signed the purchase agreement without learning of the notice.
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Buyer must prove that Seller physically prevented Buyer from visiting the health department. Seller's answer is irrelevant because permits are regulatory issues, not contract facts. Seller's negative answer to a direct permit question and suppression of a known suspension can support actual fraud when the permit issue was material to Buyer's consent. The nondisclosure matters only if the sale agreement expressly warranted every permit.

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