On February 13, Mario purchased an engagement ring from John, a jeweler, for $5,000, relying upon John's representation that the ring was set with a genuine diamond. The next morning, Mario had the ring appraised by a gemologist and learned to his amazement that the center stone was not a genuine diamond, but rather a zircon, a cheap imitation that looked like a diamond but was worth only $50, and that the entire value of the ring was $200. Nevertheless, the next day, Mario gave the engagement ring to Gina, his fiancée, on Valentine's Day, as he had promised. One month later, Gina terminated her engagement to Mario and returned the ring to him. The following day, Mario decided to rescind his contract with John and to sue John for damages. 

(a) Does Mario have the right to rescind his contract with John? Explain. 

(b) Does Mario have the right to recover damages, from John and if so, how would the damages be computed? Explair. 

(c) What if in the facts above, John never says the ring is a genuine diamond. Rather he ells Mario, "This ring is set with an incredible stone. Your fiancée will love it!" Does this change the outcome of Mario's claim?

Answer rating: 100% (QA)

Required solution Answer A Misrepresentation is a false statement about a material fact relied on by ... View the full answer