Michigan National Bank v. Marston

Defendant is an insurance man who, as a sideline, purchased damaged automobiles, repaired them, and then resold them. In April 1966, he purchased a 1965 Imperial convertible, the interior of which had been completely gutted by fire but was otherwise in excellent condition. During the negotiations for the purchase he called the plaintiff’s installment loan department in order to find out the loan value of a 1965 Imperial. The supervisor gave the loan value as $3,000, but the defendant did not mention the condition of the car at the time of the call or later when the loan was executed.…