Question
Diamond Dave of Wham Marketing decides to sell his marketing business to Fast Freddie. Freddie has a number of questions about the receivables of the
Diamond Dave of Wham Marketing decides to sell his marketing business to Fast Freddie. Freddie has a number of questions about the receivables of the business. Diamond Dave tells Freddie that all of the answers to his questions can be found in the corporate ledger for the business. Instead of inspecting the ledger, Fast Freddie hires an accounting firm to do an audit of the business. Relying on the results of the audit, Freddie buys the business. Which of the following explains why Freddie would fail to obtain rescission of his contract for misrepresentation?
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