Dee is looking for her first car. In the local paper she sees a full-page colour advertisement for Sangeet's Car Sales Pty Ltd: Used car sale. Unbeatable offers on 3-year old models. Low kilometres. 12-month warranty. The featured vehicles include 3 model Mazda 2s priced at $9,999 drive away. On Saturday morning she goes to take a look. She takes a liking to the silver Mazda 2, and has a good look around the outside and inside. She notes with satisfaction that the odometer shows 75,000. The salesman tells her: "Personally, I think this one is the best of the lot." Dee asks Sangeet about previous ownership of the car as "it is important to her that it has only had one owner" and Sangeet replies: "The car had only one previous owner (who was an individual) ." Dee replies that she would like to buy it, but the best she can do is $9,500 cash. He replies: "Alright. Come inside." In the office Sangeet prepares a sale document with a description of the vehicle and a cash sale at $9,500 and gives a copy to Dee, which she reads. They agree that Dee will return with payment within 3 days. There is no mention of warranty. Dee signs the sales document. Three days later, having visited her bank, Dee returns with a bank cheque for $9,500 and collects her new car. There is a zipper case on the driver's seat containing the handbook and previous service record, which she puts in the boot. Three months later Dee finds that her car is slipping out of gear. Next morning she drops it off with Alex, her mechanic. Alex calls her that afternoon. The automatic clutch of the Mazda 2 is badly worn and needs replacing. The total cost for the work is $2,500. From the handbook and service details Alex discovered that the previous owner was a company, and the Mazda 2 was a fleet car. At the time of the sale it had actually covered 175,000 kilometres.

QUESTION:

Dee tells you that had she known about the true condition of the car, she never would have bought the car, and asks you to explain the legal situation to her. What rights does Dee have under the common law? Refer to any applicable case law and principles in answering this question. What remedies can Dee obtain under the common law?

You are expected to consider the following:

Are any of the exchanges considered to be terms of the contract?

If you determine that terms are made out are they enforceable? Why or why not?