Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elements Of Chemical Reaction Engineering

Authors: H. Fogler

6th Edition

9780135486221

Students also viewed these Law questions