Consumer Law, Warranties Is this fraud?

[jmga]

My jurisdiction is: OH

My husband purchased a small business, a ladies only gym, approximately 2 months ago. He was given a profit and loss statement by the former owner, and an agreement to sublet the space from the former owner. He had all documents reviewed by an attorney and believed them to be truthful. In the past thirty days, he has come to find out that the profit and loss statement were completely incorrect. When he has asked the former owner for accurate information, she dodges the questions. I do not want to see him in trouble for documentation he believed to be truthful. What can we do?

 

[dee_dub]

Giving false financial statements may have been a breach of the contract (if one of the terms was that the vendor would provide financials), or a negligent or fraudulent misstatement. In either case, your husband might be entitled to have the contract rescinded, or might be entitled to financial damages. He should consult with a local attorney.