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Question - Peter offered to sell his restaurant business to Denise. Before accepting, Denise requested the financial statements for the business. Peter delivered them but he inflated the revenue figures on the income statement to make it look like the company made more money than it actually did. After reviewing the statements, Denise agreed to purchase the business. She has now discovered that the business is not very profitable.
Required -
a) Can Denise get out of this contract? If so, on what basis?
b) Can Denise choose to remain in the contract? If so, is she entitled to be compensated in any manner?
c) What are her options if she doesn't wish to remain in the contract at all?
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