Chapter 5 Rachel owned the right to mine for gold on a particular piece of property. Because she lacked immediate financial resources, she issued a statement that was designed to attract investors. That statement was, as Rachel knew, false. It claimed that the land held considerably more gold than it actually did. Relying upon the truth of the information contained in Rachel's statement, Siddharth invested $100 000 in her mining project. Based on the statement, he expected to earn a net profit of $750 000 with which to buy a house. In fact, he earned a much more disappointing profit of $10 000, not enough to even make a down payment on a house.

_/10 CASE 5

_ /1 Parties

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_ /2 Issue

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_ /2 Law

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_ /3 Analysis

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_ /2 Remedy

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