Question
Sam and Dave negotiated for the sale of Dave's Hardware store. During negotiations, Dave stated that the gross takings of the business were $3,000 per
Sam and Dave negotiated for the sale of Dave's Hardware store. During negotiations, Dave stated that the gross takings of the business were $3,000 per week. Soon after these negotiations, extensive road works commenced outside the store, and gross takings fell to $1,400 per week. Some two months later, Sam purchased the business and found the takings significantly less than Dave had represented. Required: Consider whether Dave's statement, relating to gross takings, during negotiations represents a term of contract. If so is the term a condition or a warranty? Are there any other legal arguments available to Sam against Dave?
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