This section contains the nature of the case and procedural background.

On August 4, 1965, Reliance entered into a contract with DiDonato to sell certain property for $16,000. Reliance executed a certification stating that the premises were zoned industrial. This certification was correct and was appended to the Agreement of Sale. On September 22, 1965, the premises were changed from industrial to residential, but the public records did not note this change. The transaction was settled on October 7, 1965. At closing, a certification of zoning was delivered to DiDonato that indicated the premises were still zoned industrial; this was procured from the Department of Licenses and Inspection. In 1967, DiDonato contracted to sell the premises and then learned about the zoning change. A variance was not obtained, and then DiDonato (P) sued Reliance (D) in equity to rescind the Agreement of Sale. The Chancellor found for D and P appealed.

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