Question
Eric wanted to buy a secondhand van from Motors Ltd. The van that he liked was displayed in the showroom. Eric informed Paul, the salesman
Eric wanted to buy a secondhand van from Motors Ltd. The van that he liked was displayed in the showroom. Eric informed Paul, the salesman that he wanted to use the van to take his family on short weekend breaks. Paul told Eric that the van had recently been serviced (which was true), and that the exhaust pipe had already been replaced (which was not true). Paul wanted Eric to buy this van so that he could meet the monthly sales target. Eric finally bought the van at HK$50,000. Paul asked Eric to sign the Sales Agreement. The Agreement contained the following clause:
"This Agreement constitutes the entire agreement. This Agreement shall supersede any prior promises, agreements, representation, undertakings or implications whether made orally or in writing between you and Motors Ltd relating to the sale of a vehicle"
After a week, the van that Eric bought started to stall and made a lot of noise. Eric took the van to the garage and was informed that the engine and the exhaust pipe should be replaced.
Motors Ltd argued that the company was protected by the exclusion clause contained in the Agreement.
Advise Eric.
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