This question should be answered in IRAC format. Please also include all relevant keywords, terms and phrases when discussing each topic.
Patrick sued Dustin to rescind a contract for fraud and damages. Patrick alleged in his complaint that, pursuant to a written contract, he had purchased a business from Dustin in reliance on Dustin’s fraudulent representations as to the value of the business’s inventory and cash on hand. At trial, without objection, Patrick introduced a written contract, which included recitals of facts containing the statement: “the company is solvent, with inventory and cash assets valued at $200,000” and a boilerplate integration clause (i.e., “no other representations have been made,” etc.).
Patrick proposes to testify that during negotiations Dustin said the real value of the business in cash and inventory was about $500,000, but that tax laws made it inexpedient to recite the real value. Dustin’s attorney objects.
The offered evidence is:
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First, consider whether Dustin’s statement made during negotiations is being offered for the truth of the matter asserted. Then, consider the impact that Dustin’s statement may have had on Patrick during the deal.
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