5. Revocation Based on Observation

11:09 - 2016/01/02

Q1543: According to the information provided by the vendor regarding the area of land, the buyer agreed to buy it. Upon checking he found out that the measurements do not tally, i.e. the area is much smaller than what he was told by the vendor. Is such a transaction legal and valid? Has the buyer the right to revoke the deal?

A: If the plot of land, which had already been viewed, was bought depending on the information about the area provided by the vendor, the deal is valid. However, the buyer has the right to revoke the deal because the land was not as the vendor had described. Yet, should the sale have been concluded by way of agreeing on the price of each square meter of the land, and it has been discovered that the total area falls short of the vendor’s description, the sale is correct insofar as the true area is concerned. The buyer has, therefore, the right to demand from the vendor to pay him back the extra amount he paid for the non-existent land or revoke the entire deal and get his money back.