Referring to the case the purchaser would have to prove that having a ghost made the contract invalid. The way to prove that would be to establish that the house was reputed to be haunted prior to the purchase and that this was something that the seller knew and that he should have passed this information on to the purchaser. The onus will be on the seller to prove that the house had a prior reputation of being haunted. It will however be difficult for the purchaser to prove a ghost wasn't there. The court wouldn't look at whether a house actually was haunted but it would look at the reputation of the house to see if it had been misrepresented and whether that misrepresentation was a material fact that should have been disclosed at the time the contract was made. (Cheshire & Burn 2000 Pp. 12)
A misrepresentation is an untrue statement. If it is relied upon by a party to a contract for the sale or other disposition. The purchaser's wish to obtain accurate responses, “warts and all” to enquiries about the property from the vendor, who is more familiar with the land than is the purchase Goding v Frazer [1967] 1 WLR 286. The subject matter of the transaction needs to be defined in the following respects. Its physical extent, which can be defined in words and/or numbers and/or by reference to a plan; The estate or interest in the land; The rights the benefit of which pass with the estate or interest in the land being transferred; The rights of others (third parties, or rights being reserved by the transferor) subject to which the land is being transferred.If the description of the property does not correspond with what the vendor is ...