FA question from Business Law
Legal Scenario Beautiful Homes Ltd., a property developer, intended to construct two trendy condominiums on two adjacent properties In 2006, before either building was constructed, Mrs. Freddy ("Freddy) looked at plans of units in both buildings and was considering buying a unit in the first building with a completion date in early 2008 Beautiful Homes Ltd's sales representative ("Sales Rep) told Freddy the cost of units in the second building, which was to begin construction later in 2009, would be much higher. Sales Rep assured Freddy the re-sale value of units in the first building would rise as a result of the higher property values of the same units in the second building Sales Rep further assured Freddy that both condominiums were part of a "prestigious project." Upon learning these details, Freddy had decided to purchase a condominium unit in the first building. In the contract of purchase and sale of the unit in the first building, no reference was made to the second building After the first building had been completed in 2008, Freddy took possession of the property. Shortly after possession, the local economy went into a recession and so the second building was never built. Instead, the land was sold to an owner who constructed low-income townhouses there in 2010. This dramatically reduced the re-sale value of Freddy's unit. In 2014. Freddy demanded her contract with Beautiful Homes Ltd. be rescinded Beautiful Homes Ltd refused to give Freddy her money back. Freddy decided to take legal action against Beautiful Homes Ltd. In 2015 Instructions Your factual analysis should focus on Freddy's legal case. Your answer should discuss: 1. Case Name (who is suing who) 2. The main legal issue (legal concept that applies) 3. Reasoning (legal discussion/description as it applies to the case), and 4. Risk Reduction strategies Legal Scenario Beautiful Homes Ltd., a property developer, intended to construct two trendy condominiums on two adjacent properties In 2006, before either building was constructed, Mrs. Freddy ("Freddy) looked at plans of units in both buildings and was considering buying a unit in the first building with a completion date in early 2008 Beautiful Homes Ltd's sales representative ("Sales Rep) told Freddy the cost of units in the second building, which was to begin construction later in 2009, would be much higher. Sales Rep assured Freddy the re-sale value of units in the first building would rise as a result of the higher property values of the same units in the second building Sales Rep further assured Freddy that both condominiums were part of a "prestigious project." Upon learning these details, Freddy had decided to purchase a condominium unit in the first building. In the contract of purchase and sale of the unit in the first building, no reference was made to the second building After the first building had been completed in 2008, Freddy took possession of the property. Shortly after possession, the local economy went into a recession and so the second building was never built. Instead, the land was sold to an owner who constructed low-income townhouses there in 2010. This dramatically reduced the re-sale value of Freddy's unit. In 2014. Freddy demanded her contract with Beautiful Homes Ltd. be rescinded Beautiful Homes Ltd refused to give Freddy her money back. Freddy decided to take legal action against Beautiful Homes Ltd. In 2015 Instructions Your factual analysis should focus on Freddy's legal case. Your answer should discuss: 1. Case Name (who is suing who) 2. The main legal issue (legal concept that applies) 3. Reasoning (legal discussion/description as it applies to the case), and 4. Risk Reduction strategies
