Question
Mr. Simasiku is looking to enter the farming industry and has enlisted the help of a wellknown estate agent. The estate agent informs Mr. Simasiku
Mr. Simasiku is looking to enter the farming industry and has enlisted the help of a wellknown estate agent. The estate agent informs Mr. Simasiku that Mr. Kasper, another client, is selling his farm for N$8,600,000. Despite only having N$6,500,000, Mr.Simasiku is interested in buying the farm and plans to secure a bank loan from Capricorn Capital Pty (Ltd) to cover the shortfall. When Mr. Simasiku applies for N$ 2,100,000, the bank tells him that such a large sum will need the bank to undertake extensive due diligence, which will take about 30 working days. Concerned about the possibility of Mr. Kasper selling the farm to another buyer, Mr. Simasiku approaches the estate agent and explains that he can only secure the full purchase amount after the 30-day due diligence period as mandated by the bank. Mr. Simasiku is given reassurance by the estate agent that the farm will not be sold to any other buyer. Subsequently, a written agreement is reached between all relevant parties, solidifying this assurance To Mr. Simasiku's dismay, he later discovers that Mr. Kasper had sold the farm to a wealthy businessman, Mr. Nguvauva, who had offered N$ 9,000,000 for the property before the agreed-upon 30-day period had elapsed. Based on legal precedent, please provide guidance to Mr. Simasiku regarding the possibility of pursuing a claim against Mr. Kasper, along with any supporting rationale for such a claim. /25 marks
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