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Mike and Mary who are married, own a hardware business jointly, in equal shares. Mike has been actively operating the business for many years whilst
Mike and Mary who are married, own a hardware business jointly, in equal shares. Mike has been actively operating the business for many years whilst Mary has been taking care of the home and looking after the children. As such Mary has had very little exposure to the business, but she trusts Mike as they have been married for many years. One day Mike convinces Mary to transfer full ownership of the business to him, which Mary does. A few months later, Mike informs Mary that he is in love with Carol and that he plans to build a life with her. Mary wants to cancel the contract she concluded with Mike for the transfer of the business to him. Based on this contract, Mary was paid R50 000, but the market value of the business was R900 000. Assume that any formalities that may be applicable to this transaction, were complied with. Advise Mary on an appropriate cause of action that she can pursue to seek to cancel the contract, and whether she will be successful. Discuss fully and refer to case law in your answer. Do not discuss the law relating to misrepresentation for this
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