Case 1

Mrs & Mr Perry decided to construct a building which they could rent out to stores as part of shopping complex. In order to make a proper return on their investment, they determined that their building had to be constructed for less than $ 120,000.

The Perrys met with an Architect who'guesstimated'that he could design a plan that could be constructed for $120,000 or less. The Perrys agreed to have the Architect draw up the design plans for a fee of $5000.

When Perrys later brought the architect's plans to a contractor, they were told that construction of the building would far exceed their spending limit. The Perrys now refuse to pay the architect the agreed fee of $5000 on the basis of what they claim to be a pre-contractual misrepresentation about the cost to implement his construction plans.

Questions:

a. Is the 'guesstimation' by the architect a misrepresentation of fact or an opinion?

b. Does the fact that the architect is an expert make any difference to your answer?

c. Would your answer change if you knew that the Perrys regularly commissioned buildings like this one?

HINT:

Read all the three questions first, may be one question is going to make help in answering another question. In addition, it will also help you in not assuming something to answer.

Case 2

Johnyhas always wanted to be a firefighter but he is functionally blind in his left eye. Knowing that the City of Ottawa would not hire him if it knew about his visual impairment, Johny did not mention about this fact while applying. He also remained silent about another fact that he has arranged for a friend to take the medical examination on his behalf.He was offered a job on the basis of his resume and the results of his friend's medical examination.

One day while responding to a fire alarm, the fire truck that Johny was driving collided with a van killing two people.A short time later, the fire chief received an anonymous tip that Johny was blind in his left eye. As a result, the city persuaded Johny to resign and then had charges pressed against him under criminal code.

Johny argued since the accident occurred while he was on duty the city must pay for the damages as per the contract. The city responded by saying Johny had misrepresented the facts.

Questions:

1. Was it a misrepresentation on Johny's part?
2. Would it still have been a misrepresentation had Johny not used his friend as a stand-in?
3. Should City pay for the damages?

HINT:

Read all the three questions first, may be one question is going to make help in answering another question.

1. Yes or no and why? Do not write what you will write as your answer to question 2

2. Specific answer to the question required

3. There are different contracts that exist in this case. Consider those