The owner of the company, coco, decides to offer the business for sale. Jack thinks business will be profitable and decides to negotiate with coco to buy the business. In September, Jack looked at the financial reports and asked if there were any other matters that might affect the profitability of the business. coco said 'No, everything is fine, nothing to worry about'. This statement was true at the time. In October there are legal proceedings against the business. coco was aware of these proceedings, and that they were likely to be costly. However, she did not mention this to Jack. On 3 November, Jack told coco in an email that he wanted to buy the business. On 5 November coco emailed Jack and said "I'm so glad that you have agreed to buy, it is very profitable and I have no reason to believe that there will be any troubles in the future". On 6 November, coco and Jack sign a contract for sale and Jack pays a deposit. coco agrees to transfer the business and Jack agrees to make the final payment on 5 December. The contract did not mention anything about liabilities arising from court judgments. Jack makes the final payment on 5 December and ownership is transferred to Jack. On 15 December Jack learns that the Federal Court has ruled against and the company is required to pay $5million in penalties. Advise Jack: Is there any action in equity that Jack can bring against coco