Alison buys a picture for £50,000 from Bruce, a dealer, who sells it as the work of Andy Warhol, a famous painter. Had the picture been genuine, as Bruce had represented, it would have been worth only £20,000. In fact it is a work by a lesser-known disciple of Andy Warhol worth only £1,000. If Alex retains the picture, what is his reliance interest?

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The Answer of Alison buys a picture for £50,000 from Bruce, a dealer, who sells it as the work of Andy Warhol, a famous painter. Had the picture been genuine, as Bruce had represented, it would have been worth only £20,000. In fact it is a work by a lesser-known disciple of Andy Warhol worth only £1,000. If Alex retains the picture, what is his reliance interest?

Alison Buys a Picture for £50,000 from Bruce, a Dealer