In negotiations for the purchase of a ranch, Adler (the seller) discussed water rights with Folt, the

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In negotiations for the purchase of a ranch, Adler (the seller) discussed water rights with Folt, the buyer. Adler never mentioned an ongoing dispute she had over such rights with a neighboring rancher. After the purchase, Folt realized that he had “bought a lawsuit” when his neighbor sued him over the water rights. In turn, he therefore sued Adler for rescission of their contract. Who will prevail, and why?

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