Phil purchased a fruit retailing business from Sean. During negotiations for the sale Sean stated that;"... Last year wasn't a good year but we still made a $30,000 profit. Business has picked up this year and I think the profit will rise to $50,000...". Two weeks later Phil and Sean signed a contract for the sale of the business. Phil's accountant examined the books of the business after the contract was made. He has now been informed by his accountant that the business made a net loss last year (the $30,000 was a gross profit figure), and based on the financial history of the business, there is no possibility of the business making anywhere near a $50,000 profit this year. During the negotiations, Sean was also aware that two experienced staff in the business had recently resigned, and this would also have impacted on the profitability of the business. He did not disclose this information to Phil.

Required

Identify and discuss the relevant law and remedies available to Phil.