What recourse do I have if I was sold a business with false papers?

Full Question:

I was sold an ice cream/sandwich shop with false papers. What recourse do I have against the seller?
02/09/2007   |   Category: Real Property ยป Fraud   |   State: California   |   #603

Answer:

A purchaser of personal or real property who has been induced to enter into the contract of purchase by the fraud or misrepresentations of the seller or vendor or his agent or representatives has an election. He or she may:

(1) rescind or avoid the contract;
(2) affirm the contract, retain the property received under it, and bring an action at law for fraud and deceit against the seller or vendor to recover the damages sustained by reason of the fraud or misrepresentations;
(3) if he or she is sued for the agreed price, he or she may set off or recoup the damages resulting from the fraud.

Thus, a purchaser is not limited to the contract when bringing claims against a seller but may also bring claims for fraudulent concealment, fraudulent misrepresentation, and negligence.

Obtaining property by false pretenses is the fraudulent or deceitful acquisition of both title and possession of the property. This is a crime under California law.

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