Diana began negotiations with Clark to buy the SkinnyMe business in February 2019.

March 2019: Diana examined the financial reports and the business is doing well. Diana asked if there were any matters that might affect the profitability of the business. Clark said 'No'.

April 2019: An unhappy customer commenced legal action against SkinnyMe in the Supreme Court. Clark does not tell Diana.

May 2019: Diana and Clark sign the contract. Clark agrees to transfer the business on 1 July, Diana pays a deposit immediately and agrees to make the final payment on 1 July.

June 2019: the ACT Government passes a law that bans the sale of diet drinks direct to consumers. This law will reduce profitability by more than 50%. Diana tells Clark that she no longer wants to buy SkinnyMe and demands her deposit back.

Advise Clark.