Contracts Keyed to Scott
Spiess v. Brandt
Lowell and Maurice Spiess (Plaintiffs) agreed to buy Jameson’s Wilderness Resort from William and John Carlos Brandt (Defendants) for $95,000. Plaintiffs made an initial offer of $90,000 after their first conversation with Defendants, during which William Brandt had indicated his expectation that the future prospects of the resort were good. During subsequent negotiations, Defendants asked for $100,000 for the resort. Plaintiffs asked how long it would take them to recoup that money and Defendants responded that it would take about five years. Defendants also stated that they made “good money” owning the resort. In actuality, Defendants lost money each year they operated the resort. The parties eventually settled upon the sale price of $95,000. About six months after the purchase, Plaintiffs sued for rescission of the contract on account of Defendants’ fraudulent misrepresentation regarding the resort’s profitability. The trial court ruled in favor of Plaintiffs and rescinded the contract. Defendants appealed.
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