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Henry purchased a pharmacy, which was located in Thirroul Shopping Centre. The vendor Michael had fitted out the premises and obtained the provider registration number

Henry purchased a pharmacy, which was located in Thirroul Shopping Centre. The vendor Michael had fitted out the premises and obtained the provider registration number essential to operate such a business. Michael made several attractive representations in an effort to persuade Henry to purchase the pharmacy. The representations related to the establishment of a medical centre for the many medical practitioners around, a supermarket to attract business, good turnover, and the installation of air-conditioning and up-to-date computer systems. Henry completed the sale. The business traded at a loss for two years and subsequently failed. Henry is claiming that Michael, the vendor had made representations which induced him to enter into and complete the sale. The representations regarding the medical practitioners, turnover, the air conditioning and computer systems were made in a continuing course of conduct designed to entice Henry into purchasing the business. All these representations were unfounded. The representations concerning the cash-flow of the business did not come about and were in fact baseless as there had been no research into the local market, demand, population growth or the number of medical practitioners in the area. All these factors would weigh heavily on the success of the pharmacy business Henry was buying.

Advise Henry of his legal position in these circumstances. Support your answer with case law and legislation where applicable.

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