Moschelle v. Hulse

The defendant sellers appeal the judgment of the Madison County District Court which permitted rescission of a contract for purchase of the defendants’ bar in Virginia City. The central issue is whether there is substantial evidence to support the trial court’s determination that the defendants made misrepresentations of fact which constituted constructive fraud within the meaning of section 28-2-406, MCA, so as to entitle the plaintiffs to rescission of the contract. The sellers contend that any misstatements made to plaintiffs were nothing more than sales talk or puffing and that they did…