Spiess v. Brandt
Minnesota Supreme Court
41 N.W.2d 561 (Minn. 1950)
Relevant factsFree
During negotiations that raised the resort's price from an initial $90,000 offer to a final $95,000, the Brandts (defendants) falsely told the Spiesses (plaintiffs) they were making "good money" from the resort, when in fact they lost money every year they operated it; after discovering the resort's actual unprofitability, the Spiesses sued for rescission, and the trial court rescinded the contract.
IssueFree
Whether a person commits fraud if he makes a false representation of a material fact knowing it to be false with intention to induce the person to whom it is made to act in reliance upon it, and such person is thereby deceived and induced to act in reliance upon it, to his financial harm.