Question
Bob Buyer was interested in purchasing a commercial building out of which he would operate a dog daycare.At a local charity golf outing with co-workers,
Bob Buyer was interested in purchasing a commercial building out of which he would operate a dog daycare.At a local charity golf outing with co-workers, Bob was introduced to Sally Seller, who owned multiple buildings in the area.After a brief conversation in which Bob mentions his dream to one day open a dog daycare, Sally told Bob, "I have a building next to the dog park on Fifth Street that would be an excellent location for a dog daycare."
Sally believed the building would be convenient for Bob's intended purpose, but she also knew from previous experience that the building was not zoned for an animal daycare. Sally (but not Bob) knew that local zoning authorities were reluctant to approve such a rezoning and had previously rejected an application to permit animal daycare in that exact building.
Bob replied to Sally, "Wow, that does sound convenient, but I've heard that it can be difficult to get property zoned for this purpose."Sally kindly smiled and offered to give Bob a tour of the building the next time he was in the area.
Bob later took a tour and purchased the building.Following the purchase, Bob's application to rezone the property for his intended purpose was denied by zoning authorities.
Can Bob seek to rescind the contract on the basis of misrepresentation?Please explain.
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