Donna Brown Owned a Flower Shop Which She Was Anxious

Essay

Donna Brown owned a flower shop which she was anxious to sell. Charles Blue visited her shop and discussed a possible purchase. During those discussions Donna stated that she was sure 1998 sales would exceed $400,000 and that sales for 1997 were more than $360,000. Charles was impressed with those figures and offered to purchase the flower shop for $110,000 cash. The sale was completed one week later (November 24, 1997) and was documented with a brief written agreement which did not include anything about past sales. In April 1998, Charles had the 1997 financial statement for the flower shop prepared and actual sales for 1997 were $320,000. In addition, Charles knew that 1998 sales were 5% below sales for the same period a year earlier. Charles confronted Donna with those figures and Donna was evasive and refused to accept any responsibility, saying only that the written agreement contained no mention of sales figures. Charles asks you the following questions:
a. Do I have a right to sue Donna and if so, what is the legal basis for my action? What must I prove and what are my chances of success?
b. What remedies could I seek and do I have different remedies from which I can choose?