Stadler v. Rohm

One issue is dispositive of this appeal: Did respondents, by their actions, affirm the contract be tween the parties, thus precluding their right to the equitable remedy of rescission? The appellant concedes that the evidence supports the trial court’s findings that three misrepresentations were made as inducements to the plaintiffs-respondents’ entering into the contract for the purchase of the Guest House Motel. He concedes the materiality of the misrepresentation that there were 40 rooms, whereas in truth there were only 39, and the further misrepresentation involving the understatement of…