Dutton is in financial difficulty and needs to sell his cattle ranch to pay off his debts. He tells Lucy that he paid $1,450,000 for the ranch in 2001, and that he believes it is worth twice that at the present time. Relying upon these statements, Lucy buys the ranch from Dutton for $2,525,000. Dutton did pay $1,450,000 for the farm in 2001, but its value has increased only slightly, and it is presently worth no more than $1,900,000. On discovering this, Lucy offers to reconvey the farm to Dutton and sues for the return of her $2,525,000. A. Is Lucy entitled to rescind the contract and get her money back? Why or why not? B. Modify the facts in (a) by assuming that Dutton had paid only $1,100,000 for the property in 2001. What result?

ANSWER IN IRAC FORMAT