Question
Sara has been the owner of the 'Metro Coffee Cafe' for over 30 years. She has decided to sell the caf and move to Wakanda.
Sara has been the owner of the 'Metro Coffee Cafe' for over 30 years. She has decided to sell the caf and move to Wakanda. Dan has been thinking of venturing into the food industry business and sees the sale of the caf advertised in the local estate agents. He visits the caf and notices in the window a Food Hygiene Notice with a very good grading of 5. Carlos is very impressed.
Dan is concerned about competition from other cafes and asks Sara if there are any other cafes nearby. Sara says no. She fails to mention that planning permissions has been granted to turn a shop across the road into a caf. Dan asks Sara to show him the accounts for last year. The accounts suggest the business is very healthy. Just to make sure, Dan asks his friend Lucas, an accountant, to look over the accounts. Lucas agrees the business is a very profitable looking business. Dan decides to buy the caf. Between Dan agreeing to buy the caf and the contracts being finalised, the new caf opens across the road and is very popular. Sara's caf is given a one star Food Hygiene Grading. The number of customers visiting the Metro Coffee Cafe has dropped considerably.
Consider whether Dan will be successful in an action for misrepresentation. What arguments could Sara raise in defense?
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