13.5 Innocent Misrepresentation W. F. Yost, who owned the Red Barn Barbecue Restaurant (Red Barn), listed it for sale. Richard and Evelyn Ramano of Rieve Enterprises, Inc. (Rieve), were interested in buying the restaurant. After visiting and conducting a visual inspection of the premises, Rieve entered into a contract to purchase the assets and equipment of Red Barn, as well as the five-year lease of, and option to buy, the land and the building. Prior to the sale, the restaurant had been cited for certain health violations that Yost had corrected. In the contract of sale, Yost warranted that “the premises will pass all inspections” to conduct the business.
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