Question
Stanley Seller owned a popular restaurant / bar with a large outdoor patio in the lakeside town of Grand Fun, Ontario, which he was anxious
Stanley Seller owned a popular restaurant / bar with a large outdoor patio in the lakeside town of Grand Fun, Ontario, which he was anxious to sell.During the summer months, the restaurant's outdoor patio business was typically very busy (catering to university students and families on summer vacation).During the fall and winter months, the restaurant's indoor dining facilities were also usually busy (serving local residents and families on hiking or ski vacations at a popular ski resort nearby next to the Brice Hiking Trail).In early September 2020 (after a resurgence in summer tourism following the relaxation of COVID-related business restrictions in June 2020) and just prior
the restaurant's fiscal year-end of September 30, 2020, Belinda Buyer visited Stanley's restaurant and discussed the possible purchase of the restaurant business from Stanley.During those discussions, Stanley stated that, based on the growing year-round demand for hiking, skiing and lakeside vacations in the Grand Fun area over the past few years and the resurgence of tourist demand in summer 2020, he was sure that sales revenue for the restaurant's 2020/2021 fiscal year would exceed $500,000.He also indicated that sales for the 2019/2020 fiscal year were more than $450,000.Belinda was impressed with these figures and offered to purchase Stanley's restaurant business for $800,000.The sale was completed 5 days later (on September 15, 2020) and was documented with a brief written agreement which did not include anything about past sales figures.In early December 2020, Belinda had the 2019/2020 financial statements for the restaurant prepared and actual sales revenue for the 2019/2020 fiscal year was $400,000.In addition, Belinda knew that the first-quarter 2020/2021 sales to date were 20% below sales for the same period a year earlier.Belinda confronted Stanley with these new figures in mid-December 2020 (prior to the province-wide COVID-related lockdown in late December 2020), and Stanley was evasive and refused to accept responsibility, saying only that the written agreement made no mention of any sales figures.Belinda now asks you the following questions:
(a)Do I have the right to sue Stanley and, if so, what is the legal basis for my action?What must I prove and what are my chances of success?
(b)If I can sue Stanley, what remedies can I seek in the circumstances of this case?
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