Question
James and his wife Tien want to buy a house in the country. They receive a brochure from a property developer, SharksRUs Pty Ltd, advertising
James and his wife Tien want to buy a house in the country. They receive a brochure from a property developer, SharksRUs Pty Ltd, advertising a housing development called "Lake View Village". The brochure contains a number of statements, including the following: "A little piece of paradise - you'll think you've died and woken up in heaven"; UOW Law 960 Legal Studies for Professionals 2020 Tri3 2 "All the appliances throughout the house, in the lounge, kitchen and laundry will be European brands"; and "Every house will have a view of the lake". Purchasers are often keen to purchase 'off the plan' (that is, to sign a contract to purchase before the house is built) due to significant savings on stamp duty. James and Tien negotiate will Bill, the managing director of SharksRUs Pty Ltd. During the negotiations, Bill confirms the statements about the lake and the appliances. James and Tien are thrilled and immediately sign a contract of sale. The written contract of sale contains no reference to the European appliances, nor does it mention the lake. The house is completed in January 2017 and James and Tien conduct a final inspection of their property before moving in. They are disappointed to discover the appliances are cheap imports, and as they look out of their lounge room window, expecting a view of the lake, they realise the lake has been downsized and is actually more like a muddy pond. James and Tien realise that this is not a "little piece of paradise" after all. James and Tien seek your advice as to whether they have any contractual rights in respect of the statements referred to in the brochure. Advise James and Tien as to the availability of any action for breach of contract against SharksRUs
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