Larry offered to sell Stanley his car and told Stanley that the car had been driven...

Larry offered to sell Stanley his car and told Stanley that the car had been driven only 25,000 miles and had never been in an accident. Stanley hired Cohen, a mechanic, to appraise the condition of the car, and Cohen said that the car probably had at least 50,000 miles on it and probably had been in an accident. In spite of this information, Stanley still thought the car would be a good buy for the price, so he purchased it. Later, when the car developed numerous mechanical problems, Stanley sought to rescind the contract on the basis of Larry's fraudulent misrepresentation of the auto's condition. Will Stanley be able to rescind his contract? Discuss.

Expert Solution

A contract can be considered valid if it has the following components:

Offer
Acceptance
Intention to create legal relationship between the involved parties
Consideration

If the contract is valid, then it can be legally enforced.

Let’s identify the components of contract in the given case:

Offer: Larry offered his Car to Stanley
Acceptance: Even after knowing the real status of the car from the mechanic. Stanley wanted to buy the car. So, he accepted Larry’s offer
Intention to create a legal relationship: Yes
Consideration: Stanley offered a substantial price for the car

As all components of the contract are present, it is a valid contract and legally enforceable. In such a scenario, Stanley will not be able to rescind the contract as he himself had accepted it, even after knowing details about the ground reality.

keosha answered 2 years ago

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