Question 3

Josie is a Sole Trader who runs a chain of restaurants, agrees to lease commercial premises for five years. After she had signed the lease agreement she asks the landlord if the air conditioning system in the premises was capable of handling the load from the type of business she was running. The landlord promised that "the system is brand new and perfect for her type of business and her customer would have nothing to complain about. The system cannot cope with cooking fumes from the kitchen and customers were complaining about the unbearable humidity in the restaurant. Josie spends another $10 000 to install a proper system and she is suing the landlord for breach of contract.

Explain whether Josie would succeed in her legal action against the landlord. Support your answer with a relevant case. Use the IRAC method to answer the question.