Reference no: EM132004505

1) Susan was looking to buy a restaurant business. After looking at several different areas, she decided to contact a real estate agent who specialised in selling businesses properties.

Tom, the real estate agent, told Susan to buy a Chinese restaurant in Chinatown. Susan expressed her concern to Tom about the large number of Chinese restaurants within the area and its potential negative impact on profits. Tom told Susan not to worry about that because, in his view, such a business will be 'a gold mine' because of many tourists who visit Chinatown.

Acting on Tom's advice, Susan went ahead and bought a Chinese restaurant in Chinatown. Susan borrowed a lot of money for this business investment. Within 6 months of trading, Susan had to shut down the restaurant because tourist numbers were very low and there was lots of competition from the other Chinese restaurants in the area, resulting in heavy losses in her business.

Question is that can Susan sued Tom? give answer with reference to relevant legal principles and case law.

2) Just before signing a contract to buy a house, Susan asked the seller whether there were any white ants in the house. The seller said "no", so Susan bought the house. No mention was made of white ants in the written contract. Later, Susan found that the house was full of white ants. Susan sued the seller for compensation. The seller said this was not part of the contract.

Question is: looking on Van Den Esschert v Chappell 1960 (white ants case) that Susan have any chance win (reference to revenant principles of contract )?