M substantially misrepresents to Y the income on a commercial building that is for sale, and Y enters into a contract to purchase the building relying on that information. What recourse is available to Y?

When a party, in this case, Y, enters into a contract based on substantial misrepresentation, the legal principle that applies is that the aggrieved party has the right to seek recourse due to that misrepresentation. In this scenario, since M has significantly misrepresented the income associated with the commercial property, Y may argue that the contract is voidable.

By seeking to have the contract voided, Y is essentially asserting that they would not have entered the agreement had they known the true information regarding the income of the building. Misrepresentation undermines the trust and basis of the contract, which gives Y the legal grounds to void the contract. This allows Y to withdraw from the transaction without penalties because reliance on incorrect information has led to a significant imbalance in the agreement.

The other options do not align with the legal principles regarding misrepresentation. Living with the transaction does not address the issue of the misrepresentation. Suing for specific performance on rent differences does not apply as the concept of specific performance relates to enforcing a contract rather than addressing a misrepresentation. Defaulting on the contract does not offer Y a solution, as it could lead to further legal complications without addressing the core issue of the misrepresentation. Thus, seeking to void the contract is