Sorrell v. Young

Does caveat emptor apply, or may a vendee rescind an “arm’s length” real estate contract upon discovering the nondisclosed fact that the residential lot he purchased had been filled?

In May of 1968, plaintiffs (Sorrell) contracted to purchase a residential lot (lot 3) from defendants (Young). Upon discovering that the lot had been filled, Sorrell made no further installment payments, but brought this action to rescind the contract and recover $1,457.55 paid upon the purchase price of $3,500. Sorrell also seeks reimbursement of $77 paid for real estate taxes and $70 spent for advertising in an…