A Purchaser Bought an Oil Painting from a Private Collector

question 75

Essay

A purchaser bought an oil painting from a private collector who promised that it was painted by one of the members of the Group of Seven, a promise that was held to be one of the terms of the contract.The painting quickly became the purchasers favourite.He took it home and built a special room for its viewing, with an expensive lighting system.Five years later, after having grown somewhat tired of the room, the purchaser decided to sell the painting.In so doing, he discovered much to his chagrin that the painting was worth much less than he had thought as it was, in fact, done by a less famous American painter, who worked in a style similar to the Group of Seven.The purchaser decided to try to get his money back.He sued the private collector who sold it to him, asking the court to rescind the contract on the ground that there had been an innocent misrepresentation.What are the most plausible grounds upon which the court might decide not to rescind?

---

Definitions:

Consumer's Surplus

The gap between the total sum consumers are ready and able to spend on a good or service and what they actually spend.

Used Cars

Pre-owned vehicles that have been previously registered and used by one or more owners.

Constant Marginal Cost

A situation where the marginal cost of producing one additional unit of output is the same, regardless of the level of production.

Separate Markets

Markets for different goods or services that do not affect each other, often due to geographical, product differentiation, or segmentation reasons.