Was Farley Correct...so confused?

Farley used cardboard and putty to cover the holes in the bottom of a row board. He then sold the boat to Usalis. When Usalis took the boat out on the lake, it floated for about 30 minutes and then sank. On inspection, Usalis discovered the clever cover-up perpetrated by Farley. Usalis now wants to rescind the contract. Farley argues that there was no fraud in this case because he had made no oral statements about the nature of the holes in the bottom of the board. Was Farley correct? Explain

Answers:
My guess is no, he is not correct. Farley made a conscious decision to intentionally hide the defect in the boat. This shows that he was in fact aware of the defect but chose not to disclose. It would have been different, possibly, if Farley was unaware of the hole and the transaction was conducted wholly in good faith.


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