This section contains the nature of the case and procedural background.

Ps and Ds entered into a contract for the purchase and sale of Ds' house. Two months later, the P moved in, and shortly immediately discovered that the building was infested by termites. Ps filed a bill in equity, seeking rescission of the contract and damages. Ps claimed that Ds were aware of the termite problem prior to the sale and had misrepresented the condition of the house to Ps at the time of the conveyance. Ds argued that the parties could not be returned to the status quo because they had bought a new house and hence recession was an inappropriate remedy. The trial court found the conveyance was based on a mutual mistake of material fact and granted the relief requested by Ps. Ds appealed.

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