Matters of law
Fact which proposer was not aware
Fact which could have been discovered by reasonable diligence
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. All of the above.
A material fact is a fact that would have a significant impact on the decision of a reasonable person to enter into a contract. Matters of law are not material facts because they are already known to the parties. Facts that the proposer was not aware of are not material facts because the proposer cannot be expected to disclose facts that they do not know. Facts that could have been discovered by reasonable diligence are not material facts because the proposer is not required to disclose facts that they could have discovered with reasonable effort.
Here is a more detailed explanation of each option:
- Matters of law are not material facts because they are already known to the parties. For example, if a contract is for the sale of a house, the buyer is already aware of the law that requires the seller to disclose any known defects in the house. The seller does not need to disclose the law to the buyer because the buyer already knows it.
- Facts that the proposer was not aware of are not material facts because the proposer cannot be expected to disclose facts that they do not know. For example, if a contract is for the sale of a car, the buyer is not aware that the car has been in an accident. The seller does not need to disclose the accident to the buyer because the seller did not know about it.
- Facts that could have been discovered by reasonable diligence are not material facts because the proposer is not required to disclose facts that they could have discovered with reasonable effort. For example, if a contract is for the sale of a house, the buyer could have discovered that the house has a leaky roof by inspecting the house before signing the contract. The seller does not need to disclose the leaky roof to the buyer because the buyer could have discovered it with reasonable effort.