Question

'A' sells a field to 'B'. There is a right of way over the field of which A has direct personal knowledge but which he conceals from B.

• A. 'B' has the right to rescind the contract
• B. 'B' cannot rescind the contract
• C. 'A' has the right to rescind the contract
• D. 'A' is not legally liable

Hint:

Concealment of material defects in property transfers gives the buyer a legal right to cancel the contract.

Answer 1

The Correct Option is A

Step 1: Principle of disclosure.
Under the Transfer of Property Act, the seller must disclose material defects in the property known to him.

Step 2: Application.
Here, A conceals the existence of a right of way (an encumbrance), which is a material defect.

Step 3: Legal effect.
Such concealment gives the buyer (B) the right to rescind the contract.

Step 4: Conclusion.
Therefore, the correct answer is (A).