Bill and Mary signed a contract whereby Bill was going to deliver 400 pairs of shoes to Mary's warehouse by noon on Tuesday. The contract states that the shoes will come on 4 wooden pallets. Bill knows that the shoes will come on 4 metal pallets. Mary's warehouse is full of goods on both wooden and metal pallets. Mary decides she does not want the shoes and so sues to rescind the contract based on fraudulent misrepresentation. What is the outcome?

In this scenario, if Bill knowingly stated in the contract that the shoes would be delivered on wooden pallets when he knew they would actually arrive on metal pallets, it could be considered a fraudulent misrepresentation.

Fraudulent misrepresentation occurs when one party makes a false statement with the intent to deceive the other party, and the other party relies on this false statement to their detriment.

If Mary can prove that Bill knowingly misrepresented the type of pallets the shoes would be delivered on and that this misrepresentation influenced her decision to enter the contract, she might have grounds to sue for rescission of the contract. Rescission would essentially nullify the contract, as it's based on fraudulent misrepresentation.

The outcome could be that the court might rule in favor of Mary, allowing her to rescind the contract due to the fraudulent misrepresentation regarding the type of pallets, thereby relieving both parties of their contractual obligations. However, the specific outcome would depend on the evidence presented, the jurisdiction's laws and the judge's interpretation of the case.