Question
Hulot wishes to purchase a restaurant, so he approaches a friend,Tati,whose company Tati Pty Ltd. owns an established French restaurant,L'Ecole,on Toorak Road in South Yarra.Tati
Hulot wishes to purchase a restaurant, so he approaches a friend,Tati,whose company Tati Pty Ltd. owns an established French restaurant,L'Ecole,on Toorak Road in South Yarra.Tati tells Hulot that he has been thinking of sellingL'Ecole, and he is prepared to sell it to Hulot.Tati states that he believes the restaurant is a"licence to print money" because it is the only fne-dining French restaurant within a 4km radius of Melbourne CBD.LEcole is also well positioned amongst other fine dining restaurants in South Yarra which makes it an ideal venue for diners. He offers Hulot the opportunity to inspect the books of the restaurant, but Hulot declines the opportunity because he is content to rely on Tati's adviceDuring the negotiations,Tati fails to disclose to Hulot that a new French restaurant is about to open directly adjacent to L'Ecole The contract which Hulot and Tati sign contains a number of clauses including the following: 28. Intending purchasers should make their own enquiries and any representations made by the seller cannot be relied on 32.This document contains all the terms of the agreement between the parties. Hulot signs this document without reading clauses 28 and 32. A few months after signing the contract, Hulot fnds that L'Ecole is operating at a loss.The opening of the adjacent new French restaurant has also signifcantly impacted the business.When Hulot complains to Tati about what he had said, he refers him to the written contract. Advise Hulot whether he can avoid the contract. Your answer must also consider any recourse under the Australian Consumer Law(previously the Trade
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