Mike is looking to buy a new boat. Mike is just a recreational sailor and does not know much about the mechanics of a boat. Mike finds an ad in the newspaper for the sale of a used boat. The seller of the used boat, Louie, meets with Mike and shows him the boat for sale. Mike asks Louie about the condition of the boat. Although Louie knows that the boat has an engine that is damaged and will need to be replaced or repaired before it can be used in the water, Louie tells Mike that the boat is in perfect condition and does not require any repairs. Louie intentionally tells Mike that the boat is in perfect condition in order to deceive Mike about the real condition of the boat so that Mike will buy it despite the damaged engine. Mike, trusting that Louie knows about the boat he is selling, relies on Louie's representation about the condition of the boat and enters into a contract to buy the boat from Louie. The two parties execute a written contract, Mike pays Louie and Louie gives Mike the boat. The next day, Mike takes the boat out on the water and the boat fails to start. Mike discovers that the engine is damaged and needs to be replaced. Can Mike rescind the contract he entered into with Louie? On what basis can Mike rely on to rescind the contract? Explain each element and the facts to support Mike's claim.