HOLDINGS: [1]-Because negligent misrepresentation amounted to actual fraud and deceit under Civ. Code, §§ 1710, subd. (2), 1572, subd. (2), buyers of real property were entitled to unilateral rescission under Civ. Code, §§ 1688, 1689, subd. (b)(1), 1691, 1692, in light of the trial court’s findings that the sellers made misrepresentations with reckless disregard; [2]-The trial court erred in declining to effectuate rescission based in part on the prejudice to the sellers, which was an improper consideration, and in part on the complications of unwinding the transaction, which did not present insurmountable obstacles; [3]-On remand, the trial court could consider whether to award the buyers their attorney fees under the applicable law.
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Judgment reversed.
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