1. Devi is a real estate broker who was hired by Austin to help Austin buy a new house. While Devi was showing Austin a potential home, Devi mistakenly told Austin that the house was built in 1990 with the latest earthquake-resistant technology. In actuality, the house was built in 1965 without any earthquake-resistant materials. Feeling reassured, Austin bought the house. Two year later, an earthquake struck the area, and Austin's house sustained extensive damages. Why is Devi liable for the damages to Austin's house on the basis of fraud?

2. Mike rented an apartment to Lou for one year. Despite the apartment being peaceful and having no defects, Lou broke the lease and vacated the apartment after just four months. It is later discovered that Lou left because he found a cheaper apartment nearby. Eight months after Lou broke the lease, Mike filed a lawsuit against Lou to recover the eight months of rent he was not paid. In order for Mike to be successful, what must Mike demonstrate to the court?