Opinion ID: 1144834
Heading Depth: 3
Heading Rank: 2

Heading: Materiality of the Statements

Text: Materiality is a mixed question of law and fact. A material fact is one to which a reasonable man might be expected to attach importance in making his choice of action. W. Prosser, Law of Torts § 108, at 719 (4th ed. 1971). It is a fact which could reasonably be expected to influence someone's judgment or conduct concerning a transaction. HomeLite v. Trywilk Realty Co., 272 F.2d 688, 691 (4th Cir.1959); Nader v. Allegheny Airlines, Inc., 445 F. Supp. 168, 174 (D.D.C. 1978); Restatement of Restitution § 8(2) (1937). Under § 306 of the tentative draft of the Restatement (Second) of Contracts, a misrepresentation may be grounds for voiding a contract if it is either fraudulent or material. Restatement (Second) of Contracts § 306 (Tent. Draft No. 11, 1976). The reason behind the rule requiring proof of materiality is to encourage stability in contractual relations. The rule prevents parties who later become disappointed at the outcome of their bargain from capitalizing on any insignificant discrepancy to void the contract. We conclude as a matter of law that the statements regarding highway frontage and gravel content were material. A reasonable person would be likely to consider the existence of gravel deposits an important consideration in developing a piece of property. Even if not valuable for commercial extraction, a gravel base would save the cost of obtaining suitable fill from other sources. Walker's real estate agent testified that the statements regarding gravel were placed in the listings because gravel would be among the property's best points and a selling point. [7] It seems obvious that the sellers themselves thought a buyer would consider gravel content important. The buyers received less than three-fourths of the highway frontage described in the listings. Certainly the amount of highway frontage on a commercial tract would be considered important. Numerous cases from other jurisdictions have held discrepancies to be material which were similar in magnitude to those here. [8]