Donna, who ran a small takeaway pizza business, wished to retire. Therefore, in January, Donna advertised her business for sale in a local trade magazine.

In the advertisement, Donna stated that in her opinion her pizza oven was capable of producing 20 pizzas per hour. In fact, Donna had never used the oven to produce more than 10 pizzas per hour. The oven, when new, was only designed to produce a maximum of 12 pizzas per hour.

Donna also explained in the advertisement that the pizza business was located next to a college and that this was a good source of custom. Donna did not mention that the college had recently announced that it would be closing down in the summer.

It was April before Donna received a response to her advertisement. Jimmy, an amateur chef who wished to go into the pizza business, came to inspect the premises. Donna did not repeat the statements made in the advertisement and insisted that Jimmy should inspect the oven for himself. Jimmy, who knew nothing about ovens, looked it over but did not turn it on.

Jimmy entered into a written contract to purchase the pizza business for 75,000. The written contract made no reference to the statements made in the advertisement. Jimmy quickly discovered that the oven would not produce more than 10 pizzas per hour but continued to use it in his business. In the summer, the local college closed down and Jimmy can no longer run the business at a profit.

Advise Jimmy.