Referring to the reported cases, explain the requirements that must be satisfied for a misrepresentation to found an action for rescission of a contract. Include in your answer discussion of when silence may be regarded as actionable and the legal position in regard to puffing. Having completed your discussion, consider briefly whether the remedy of rescission is available in the following cases. (a) Spudd, is the owner of the MacTavern Restaurant, specialising in traditional Irish food. He offers to sell the restaurant to Paddy for R1 million. Paddy says: I cant afford more than R750 000. Spudd replies: Paddy, this is a potential gold mine! If you devote your full attention to the business you should achieve a gross turnover of well over R750 000 a month. This last statement convinces Paddy to buy for R1 million. After running the restaurant for a short period, he discovers that Spudd, despite having worked long hours in the business every day for several years, never managed to obtain a turnover of more than R200 000 per month. (b) Shezi offers to sell his Nissan bakkie to Parbhoo. Parbhoo is concerned that the vehicle may be defective in certain respects. When he raises his concerns, Shezi says Dont worry, before I deliver the bakkie, I will have Speedy Motor Repairs overhaul it and repair any defects. Parbhoo accepts Shezis offer on this understanding. A few days later, he takes delivery of the vehicle and pays the price. He then discovers that Speedy Motor Repairs have not overhauled or even seen the vehicle. The manager of Speedy tells Parbhoo that they (Speedy) ceased to have any dealings with Shezi two years before when he failed to settle a debt which he owed them. (c) Myte lives a short distance from the centre of town. Across the road from his house he owns 2 hectares of land on which he exercises his dogs. His friend, Mayne, who is a property developer, says to him one day: Its a shame to see that large piece of land lying idle: it seems to be ideal for township development. Ill offer you R1 million for it. Myte has recently learned that the town-planning scheme for the area does not permit subdivision and that the market value of the land is only R200 000. Realizing that disclosure of these facts will put Mayne off, Myte does not mention them and simply accepts Maynes offer. After the parties have signed a written contract, Mayne discovers that he cannot establish a township on the property. (d) Van der Merwe, a Karoo farmer, is approached by Joos, who says that his son, Slyke, has Xray eyes and can see water underground, sometimes as far down as 100 metres. Joos offers to have his son look for water on Van der Merwes farm for a fee of R20 000. Van der Merwe is impressed with the sons apparent supernatural abilities, and he decides to accept Joos offer. Slykes divining efforts are unsuccessful and Van der Merwe reluctantly gives Joos a cheque for the agreed contract price. Later that day, a police sergeant tells Van der Merwe to be on the look-out for a pair of tricksters, Joos and Slyke who are defrauding people by pretending to be water diviners. Van der Merwe realizes that he is one of the victims and decides to stop payment on the cheque. (e) Solly is the owner of the Continental Restaurant, which overlooks a small dam. He advertises the restaurant for sale and Haste comes to inspect it with a view to buying. Haste says: I am prepared to offer you R1 500 000. Solly, who is in need of more money than this, decides to try and persuade Haste to offer more. He says to Haste: Look, this is no ordinary restaurant. Our customers include the State President. With the liquor licence attaching to the premises you can hold moonlight parties alongside the lake. Its a real bargain at R2 million. This speech tips the balance in Hastes mind and he buys at the asking price of R2 million. When he takes over the restaurant, he discovers that the State President only previously visited on one occasion, and that nearly all the restaurants business is done during the day so regular patrons have no interest in holding parties next to the dam.