How does Georgia law define a "material fact"?

In Georgia law, a "material fact" is defined as a fact that would influence a reasonable person's decision regarding a transaction. This concept is critical in various legal contexts, particularly in contract law, real estate transactions, and disclosures. Material facts are those aspects of a situation that could affect the decision-making process of an individual making a choice about entering into an agreement or transaction.

When a fact is material, it holds significance in that it could sway the viewpoint of a reasonable person—essentially, it is a fact that parties to a transaction are expected to consider. For instance, in real estate, if a property has a significant defect that would affect its value or desirability, this would be considered a material fact that must be disclosed to potential buyers.

The other options do not align with this understanding. A fact that does not affect a transaction cannot be considered material, as it implies no influence on decision-making. Similarly, merely stating a fact in the contract does not necessarily make it material—it must impact the transaction's outcome. Lastly, a fact known only to the seller is not inherently material unless it also carries the potential to affect the other party's decision, which is not defined by the seller's knowledge alone.