Jacqui Purchased a Business from Dickie

Multiple Choice

Jacqui purchased a business from Dickie. During the pre- contractual negotiations, Dickie said, based on past experience, he expected that the business would earn approximately $1 000 000 per year. After that statement was made, but before the contract was signed, Dickie learned that the manufacturer that supplied his business with the materials that it needed was going out of business. Dickie realized that, because of the need to purchase materials from another manufacturer, his business could only be expected to earn $700 000 per year, regardless of whether it was run by himself or by Jacqui. Afraid that that news would scare off Jacqui, Dickie decided to keep the new information to himself. Jacqui completed the purchase of Dickie's business, but was very disappointed when it earned only $700 000 in its first year. She now wants to sue Dickie. Which of the following statements is TRUE?

A) Dickie cannot be held liable because Jacqui ought to have independently confirmed his statements.
B) Jacqui cannot successfully sue unless she can prove that Dickie's statements regarding the business's profits became a term of their contract.
C) Dickie cannot be held liable because his statement was an opinion about the future.
D) While Jacqui probably is entitled to damages, she cannot possibly receive rescission because the contract has already been completed.
E) none of the above