Aquafun Co Is Looking to Purchase a New Swimming Pool

Multiple Choice

Aquafun Co is looking to purchase a new swimming pool complex to expand its operations into South West England. After a long search, a complex built in 1970, owned by Waterplanet, is found. Aquafun has the premises examined and everything seems fine. After the property is purchased, the city building inspector sees that the water pipes are completely rusted and will have to be replaced. Waterplanet was aware of this, but, as Aquafun never inquired as to the general soundness of the pipes, Waterplanet never informed them of the defects. Can the contract be rescinded for misrepresentation?

A) Yes, a seller must have 'clean hands' if he wishes to contract. Waterplanet is required to disclose all material facts that are of relevance to Aquafun.
B) Yes, Waterplanet was aware of the defects and by not saying anything misrepresented itself through silence.
C) No.