Graham and Narelle bought a three bedroom semi-detached house in a beach suburb. During their meeting with the vendor, James, prior to sale, Graham asked if there was any salt damage to the steel frames in the house. James assured Graham that he had an engineer survey the property before he listed it on the market and the steel was not eroded. Graham noticed that the contract of sale did not mention an engineer’s report, but was happy with James’ verbal assurance. After living in the house for six months, Graham discovers significanterosion to the steel frame of the house. James refuses to compensate Graham for costs associated with reversing the salt damage, referring to the contract of sale. Graham seeksyour advice as to whether he can hold James to his assurance.

Answer rating: 100% (QA)

Graham and Narelle Graham and Narelle entered into a contract while knowing that contrac... View the full answer