Noah contracted to buy a doughnut business from John Miller on October 31, 2020. During negotiations, John Miller provided an income statement that showed a 2019 profit of $25,293. Miller also prepared from his checkbook a "Tentative" statement of net income for the first nine months of 2020 which listed a $32,755 net profit figure. Miller gave Noah and Noah's real estate agent the business checkbook and inventory schedules up to September 30, 2020, admitting he had never prepared an income statement before. The contract between Noah and Miller called for a January 1 to September 30 2020 "actual" income statement which Miller provided Noah a year after Noah took possession of the business. The actual income statement listed a profit of $18,341. Noah made monthly payments on the business purchased up until Miller provided the "actual" income statement, at which time Noah stopped making payments.

Shortly after taking possession, on October 31, 2020, Noah turned the doughnut business into a Mexican Restaurant, and discontinued the profitable wholesale doughnut business.. Miller sued Noah for the balance due on the installment purchase agreement. Noah attempts to rescind the contract arguing that Miller had fraudulently misrepresented the past profitability of the business.

Requirements: Has Miller committed fraud and if so what type of fraud? What are the elements of fraud? Is Noah liable for the installment purchase agreement? Does Miller have a defense?