Elise made a Promise to Purchase for a commercial building in Québec City for $1,200,000, which the seller accepted. Before the notary's appointment, the seller discovers that the building's foundation has significant, undisclosed structural defects that would cost $200,000 to repair. What remedy is most likely available to Elise?

Question: Elise made a Promise to Purchase for a commercial building in Québec City for $1,200,000, which the seller accepted. Before the notary's appointment, the seller discovers that the building's foundation has significant, undisclosed structural defects that would cost $200,000 to repair. What remedy is most likely available to Elise?

Answer options:

• Elise must proceed with the purchase but can sue for hidden defects after the sale. ✅ Elise can request the nullity of the Promise to Purchase due to error or fraud if the defects were known and concealed.
• Elise can demand a reduction in the purchase price to compensate for the repairs.
• Elise can only terminate the Promise to Purchase if it contained a specific clause for such a situation.

Correct answer: Elise can request the nullity of the Promise to Purchase due to error or fraud if the defects were known and concealed.

Explanation: If the seller concealed a material fact (known structural defects), this could constitute fraud (Art. 1401 C.c.Q.) or an essential error (Art. 1400 C.c.Q.) which could lead to the nullity of the contract.