Patricia locates her dream house, a two-story cottage near the sea. She offers to purchase the home from Duncan at the prevailing market rate. Duncan agrees, and the two sign a contract. After the contract is signed, Patricia discovers that the home was built in violation of a restrictive covenant requiring that no homes in the area be taller than one story. Patricia asked a.Duncan to return her down payment. When he refused, she sued to rescind the contract. Who will win the case?

1. Duncan, because the violation of a restrictive covenant does not render title unmarketable.
2. Patricia, because the contract carries an implied warranty of marketable title.
3. Duncan, if he is not the one who built the house.
4. Patricia, because she will be unable to sell the home in the future.