Question 1

Under what circumstances can an innocent party obtain a remedy for misrepresentation? explain in details.

Question 2

Sheree runs Spicy Foods Imports, the leading spice importer in Freemantle and the surrounding area. She decides to sell the business and Abigail, the local business sales agent, introduces a prospective buyer, Hellendra. When negotiating the contract for the sale of the business, the issue of the restraint clause arises. Hellendra requests that the clause read that Sheree will not trade in a similar business for five (5) years within a 25-kilometre radius of the business premises in Freemantle.

Advise Sheree of the legality of the restraint of trade clause.