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Q Malina, the owner of an old, multistory factory building, offered to lease the building to Larson, a manufacturer. Larson wanted to know whether the construction of the floors was strong enough to support the heavy machinery he planned to install. Malina assured him that the floors would support any machinery brought into the building. After the lease was signed, Larson's engineer studied the construction and reported that the floors would only hold half the machinery that Larson planned to install. Is Larson bound by the lease? Why or why not?

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This is a clear case of Misrepresentation. This is because of the aspect that in this case there had been assumptions made by Malina. That is why Malina had provided Larson with inappropriate facts about floors being strong enough to support any machinery which would be brought into the building. This backfired because Larson trusted Malina and put Larson's engineer for starting the construction work. His led to more problems and dilemma for Larson and also for Larson's engineer because both of them got to know that the floors would only hold half the machinery that Larson planned to install. Larson was at no fault of his. However, Larson knew that he was bound by lease (Liuzzo & Bonnice, 2016).