Question
Smith owned five acres of land in Wilton, New York, on which were two springs of mineral water and machinery to bottle the mineral water.
Smith owned five acres of land in Wilton, New York, on which were two springs of
mineral water and machinery to bottle the mineral water. Smith sold the real property to
Brown for $300,000, representing that the water
was natural mineral water and could
be bottled or sold as it flowed from the ground.
Smith also represented to Brown that
the daily natural flow of water from
the two springs was 4,200 gallons
. Brown entered
into possession and purchased and installed modern machinery for the bottling and
distribution of the mineral water. He soon discovered that
the water was not natural
mineral water, but fresh water to which certain chemicals had been added
. He also
discovered
that the daily flow did not exceed 160 gallons
. By the time he discovered
these facts,
Brown had expended $75,000 for the installation of new machinery
.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started