Misrepresentation

In 2001, Bill Baxter decided he wanted to move out of Kuala Lumpur and live on a small farm. He inspected several properties before he found one that truly suited his purposes a 50-hectare property situated about 100 kilometres from Kuala Lumpur. As Bill was inspecting the property he noticed that a creek ran through the bottom paddock. When he asked the owner whether the creek was permanent, the owner told him that 'it had never run dry'. This pleased Bill because he knew how important it was to have a permanent source of water. He signed a contract of sale the following day. Bill moved into the property in November but to his great annoyance the creek ran dry only one month later. Furthermore, neighbours have advised him that the creek always dries up in July. Bill comes to you for advice. You discover that the signed contract does not refer to the owner's comments about the creek.

USING IRAC METHOD:

Advise Bill of all the legal grounds upon which he can sue the vendor and discuss any remedies that may arise from each of these grounds. Please refer to legislation (Malaysian Contract Acts 1950) and cases.