Suppose that Reed is buying a crane from Movers Inc.Reed needs a crane that will handle loads of up to 10,000 pounds.Movers' salesman tells Reed that the crane will handle a 10,000-pound load. Relying on this statement,Reed buys the crane.Later,he discovers that the crane will only handle a 5,000-pound load.Reed wants to rescind on the basis of either fraud or misrepresentation.Movers,however,alleges that the salesman did not make a statement of past or existing fact.Is Movers correct?

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Akash Polakampalli · Accepted Answer

Final Answer : No,Movers is incorrect.Verbally,the statement seems to look to the future,but obviously it concerns the present physical capacity of the crane as Reed's query is about the present capacity of the crane.Thus,Movers' salesman has indulged in misrepresentation of fact,and Reed can rescind the order citing the same.

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