Business Law 11th Edition by Kenneth Clarkson,Roger LeRoy Miller,Gaylord Jentz,Frank Cross

Exercise 20

Lund offered to sell Steck his car and told Steck that the car had been driven only 25,000 miles and had never been in an accident. Steck hired Carvallo, a mechanic, to appraise the condition of the car, and Carvallo said that the car probably had at least 50,000 miles on it and most likely had been in an accident. In spite of this information, Steck still thought the car would be a good buy for the price, so he purchased it. Later, when the car developed numerous mechanical problems, Steck sought to rescind the contract on the basis of Lund's fraudulent misrepresentation of the auto's condition. Will Steck be able to rescind his contract Explain.