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he car was never in an accident. If this was untrue, she made a false statement of fact. Materiality: The accident history likely influenced Bob’s decision. Inducement and Reliance: Bob relied on Alice’s statement when deciding to purchase. Knowledge and Intent: Determine whether

to sell her painting to Bob for $5,000. They shake hands and agree verbally. Alice delivers the painting to Bob, who promises to pay within 30 days. However, when the time comes to pay, Bob refuses, claiming the painting was damaged during de