1.Should Manufacturing Supply Company (Manufacturing) carry on with the agreement with Product Supply Company (Product)? Consider the following:
a.If there has been a pre-contractual misrepresentation, what other element must Manufacturing prove if it wants a remedy on this ground?
b.If the mistakes in the financial statements were innocently made, what danger does Manufacturing run if it decides to affirm the contract and then changes its mind?
2.If Manufacturing wants to avoid the agreement and assuming the circumstances come within the legal definition of misrepresentation, what steps might it take and what remedies might be open to it?
3.Should Manufacturing agree to have Parts Manufacturing Company (Parts) take its place in the agreement? What issues, if any, would this raise?
Given your answers to questions 1-3, what final advice do you think the lawyer should give Manufacturing?
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