1. Paul Peterson contracted to purchase from ralph rand, his dentist and longtime friend, a tract of land that rand owned. Peterson intended to use the land as a vacation resort. The land was irrigated from Goose Creek. Prior to the contract being signed, when Peterson inquired about water rights, Rand replied, "this track has water rights to Goose Creek." Rand did not inform Peterson, however, that a neighboring landowner had questioned the water rights and that one reason Rand wanted to sell the land was the possibility of the neighbor bringing a lawsuit against Rand the water rights. Peterson signed a contract with Rand for the property, but one month later, upon talking with the neighbor, wants to resign the contract. Peterson has said to rand, : I thought you were my friend. How could you not tell me about the possible lawsuit?" What likely result, and why?