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Donald and Hugh were both members of gemstone clubs. They met at a meeting. Hugh had a stand with the sign: For Sale: Mixed Gemstones

Donald and Hugh were both members of gemstone clubs. They met at a meeting. Hugh had a stand with the sign: For Sale: Mixed Gemstones at Marked Prices Donald was looking for a stone suitable for setting in a ring. He selected a stone priced $450.00 and purchased it from Hugh. The stone Donald purchased was later identified as a topaz. Donald wishes to return the stone to Hugh and claim his money back. Discuss Donalds rights and the legal implications of each of the following possible situations.

- Although there was no discussion, both Donald and Hugh believed it was a rough diamond. (3 marks)

- Donald believed the stone was a rough diamond but did not discuss his belief with Hugh, who knew it was a topaz. (3 marks)

- Donald told Hugh he was pleased to find a diamond. Hugh did not correct him. (2 marks)

- Hugh was the clubs expert on diamonds and offered the stone to Donald assuring him that it was a diamond, as he honestly believed it to be. (4 marks)

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