In April, David, who wished to sell his stationary store, made a statement to the representative of Company W, Lisa: Business in previous two years has been quite good. The business is bringing around $200,000 income per year. We successfully attracted ten new customers within previous three months. The figure given by David had been supported by the stores sales records, but what he did not convey to Lisa is that he knew that there would be a stationery store opening very soon in the nearby area which might affect current business. Later Lisa found out in a magazine (May edition) that a new store was going to open. David and Company W concluded the deal in July. In August, a new store opened, and took some customers from the stationary store. Company W wants rescission claiming the contract should be invalidated due to misrepresentation.

Comment on the case. Please give at least two relavent cases.