Contract based on fraudulent misrepresentation

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Reference no: EM133935391

Question

Bob bought a Portuguese Water Dog named Rover, from Integrity Dog Shop. He paid $2,500 for the puppy, the high cost due to the certi?cate that Integrity gave him, indicating that the puppy's parents were both AKC champion Portuguese Water Dogs (elite dogs). Two months later, Bob sold Rover to Mary for $2,800 and gave her the certificate he got from Integrity to show that Rover was a purebred Portuguese Water Dog whose parents were both AKC champions. Bob and Mary both believe that Rover is a purebred dog descended from champions. Then a state investigation revealed that Integrity Dog Shop has been cheating and its certi?cates are fakes. Rover is actually a mixed-breed dog, worth about $100.

1. If Bob sued Integrity Dog Shop to rescind (undo) the contract, what legal argument could he make? Explain.

2. If Mary sued Bob to rescind (undo) the contract based on fraudulent misrepresentation, would she win? Explain.

3. If Mary sued Bob to rescind (undo) the contract based on innocent/negligent misrepresentation, would she win? Explain being sure to list the elements that a plaintiff must prove in a suit based on innocent/negligent misrepresentation.

4. If Mary sued Bob to rescind (undo) the contract based on mutual mistake of fact, would she win? Explain being sure to clearly state the governing black letter law.

Reference no: EM133935391

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