Mr. and Mrs. Fred Obde (plaintiffs) purchased an apartment home from Mr. and Mrs. Robert Schlemeyer (defendants). After they moved in, the Obdes found that the apartment was infested with termites. The infestation was not readily apparent on the surface. The Schlemeyers knew about the infestation, but had not disclosed it to the Obdes, purportedly because the Obdes never specifically asked. In fact, prior to selling to the Obdes, the Schlemeyers had attempted to get rid of the termites, but did not follow the exterminator’s recommended course of treatment for financial reasons. Accordingly, the exterminator gave the Schlemeyers no guarantee that the infestation was eradicated. The Obdes brought suit on the contract, seeking damages. The trial court ruled in their favor. The Schlemeyers appealed.