John owned a grocery which he wanted to sell. Kelly showed her interests of having a...

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John owned a grocery which he wanted to sell. Kelly showed her interests of having a grocery business and therefore approached John for a discussion. John told Kelly that the demand for food would significantly increase because many new immigrants would keep settling down in that area in the future. John added that his grocery had a long-term contract with the largest local food supplier which could secure stable supply of food. Kelly bought the grocery. She later found that demand for food was actually dropping and the grocery had a contract only with a small local food supplier which offered unstable supply of food. Advise Kelly with relevant case law and legislation whether she has a claim against John. What remedies are available to her, if any? (20 marks) Part (b) Would your advice be different if Kelly had made an enquiry from her friend, Eric, who mistakenly answered that the grocery had stable food supply from the largest food supplier? What are the possible remedies available, if any? (10 marks) John owned a grocery which he wanted to sell. Kelly showed her interests of having a grocery business and therefore approached John for a discussion. John told Kelly that the demand for food would significantly increase because many new immigrants would keep settling down in that area in the future. John added that his grocery had a long-term contract with the largest local food supplier which could secure stable supply of food. Kelly bought the grocery. She later found that demand for food was actually dropping and the grocery had a contract only with a small local food supplier which offered unstable supply of food. Advise Kelly with relevant case law and legislation whether she has a claim against John. What remedies are available to her, if any? (20 marks) Part (b) Would your advice be different if Kelly had made an enquiry from her friend, Eric, who mistakenly answered that the grocery had stable food supply from the largest food supplier? What are the possible remedies available, if any? (10 marks)

Answer rating: 100% (QA)

Part a In advising Kelly on her claim against John we must consider principles of misrepresentation and contract law The key issue is whether John mad... View the full answer