Daisy decides to buy a new caravan for her coffee business. She finds a caravan advertised, which
Question:
Daisy decides to buy a new caravan for her coffee business. She finds a caravan advertised, which is described as ‘ready to use for your own food business, no further work needed’. This wording was not in the written contract of sale. Daisy signs a contract and pays the deposit. The next day when she arrives to collect the van. Once she has the keys and has paid the outstanding amount, Daisy tells the seller that she plans on using the van to make and sell coffee. The seller replies ‘no worries, this is the vehicle for you, I promise everything is all set up for your business’.
Later, when Daisy tries to install her coffee machine, she discovers that the van has not got plumbing for a coffee machine (but it is set up for the fridge). The seller refuses to provide a refund, telling Daisy that his statements were ‘mere puff’ and not a term of the contract. Daisy had to spend $1000 more to get the van up to standard to run her business.
Is there any action in contract that Daisy can bring against the seller?
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz