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House of Flavors, Inc v. Tfg Michigan, L.P

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Before Lynch, Chief Judge, Torruella and Boudin, Circuit Judges.

Tetra Financial Group, L.P. (“Tetra”) appeals from a judgment granting House of Flavors, Inc. (“House of Flavors”) rescission, together with an adjustment payment, of a lease agreement between the parties. Reserving further detail for discussion of the merits, the factual background and proceedings below can be briefly summarized.

House of Flavors is a company, based in Michigan but with its executive office in Maine, that makes ice cream; its president during the relevant period has been Whit Gallagher. Tetra is a Utah-based limited partnership that specializes in business equipment leasing. In 2005, House of Flavors decided to acquire and install an ice cream hardening system (“the system”). By coincidence, about this time Gregory Emery, Tetra’s national account executive, inquired whether House of Flavors had any projects for which it needed financing.

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