Discussion Question

Manufacturing Supply Company entered into a long-term contract with Product Supply Company to sell its manufactured parts. Manufacturing Supply Company entered into the agreement on the basis of the statements as to the financial strength of Product Supply Company by its president, but it has discovered that the statements were untrue. Parts Manufacturing Company has expressed an interest in selling the same parts to Product Supply Company and would be willing to take over the contract. Manufacturing Supply Company asks its lawyer for advice on the best course of action it should follow. What advice might the lawyer offer?