(a) Johnson tells Davis that he paid $150,000 for his farm in 2007, and that he believes it is worth twice that at the present time. Relying upon these statements, Davis buys the farm from Johnson for $225,000. Johnson did pay $150,000 for the farm in 2007, but its value has increased only slightly, and it is presently not worth $300,000. On discovering this, Davis offers to reconvey the farm to Johnson and sues for the return of his $225,000. Result?
(b) Modify the facts in (a) by assuming that Johnson had paid $100,000 for the property in 2007. What result?