SkinnyMe (SM) is a company owned by Clark Kent that sells diet drinks.

Scenario 1

Peter Parker sees an advertisement on SM's webpage. The advertisement has a picture of a super hero and the following text:

Buy now! Contains only natural ingredients, formulated for weight loss. Make sure you have 3 drinks a day for 6 months. You will lose 15 kilos and look like a super hero - or get your money back!

Peter has always wanted to be a super hero. He orders a 6-month supply of drinks and pays with his credit card online. Peter follows the instructions on the packet, and has 3 drinks a day. But, after 6 months he has only lost 10 kilograms and does not look like a super hero. He asks SM for a refund. SM refuses, and Clark tells Peter, 'of course it is not a term of the contract that you would look like a super hero'.

Peter talks to his doctor, Mary Jane, who sends a sample of the drink to the lab. The results show that the drinks contain caffeine and herbs. These ingredients do not assist with weight loss. Peter realises that he has confused the medical weight loss drug SkinnyPow (SP) with the diet drink company, SM.

Can Peter bring any action in contract law?

Scenario 2

Diana began negotiations with Clark to buy the SkinnyMe business in February 2019.

• March 2019: Diana examined the financial reports and the business is doing well. Diana asked if there were any matters that might affect the profitability of the business. Clark said 'No'.
• April 2019: An unhappy customer commenced legal action against SkinnyMe in the Supreme Court. Clark does not tell Diana.
• May 2019: Diana and Clark sign the contract. Clark agrees to transfer the business on 1 July, Diana pays a deposit immediately and agrees to make the final payment on 1 July.
• June 2019: the ACT Government passes a law that bans the sale of diet drinks direct to consumers. This law will reduce profitability by more than 50%. Diana tells Clark that she no longer wants to buy SkinnyMe and demands her deposit back.

Advise Clark.