Watts purchased a car from Boswell Motors Ltd. based on the representation of a salesman that the car was new except for some minor use as a demonstrator. Boswell Motors; however, gave no warranty as to satisfactory performance of the car for any period of time. Two days after his purchase, Watts took the car to a garage because of trouble with the gearshift and learned that the car was not new but had been repainted. In fact, the car had been previously sold to a third party and Boswell Motors had taken it back because of alleged defects.

Three weeks after he bought the car, Watts wrote a letter to Boswell Motors claiming rescission of the contract and offering to return the car on repayment to him of the payments he had made to date on the price. Watts continued to use the car for a further four months incurring more expense at the garage because of the gearshift.He then commenced action against Boswell Motors. What is the main legal issue? What remedies, if any, are available to Watts?