Reference no: EM133531731

Question

Marozia Ltd is a construction company, which owns a movable machine that it no longer needs and that has been in its garage for a few months. Marozia Ltd has decided to sell it at a very low price. It is the first time that Marozia Ltd has sold machinery. Amelika Latu is planning to enter the renovation market. Buying a brand new machine is not an option for her so she approaches Marozia Ltd to buy its second-hand machine. Amelika goes to Marozia Ltd's garage to inspect the machine. There, she meets Rigo, an electrician who is doing some routine electrical work on the building. Amelika asks Rigo if he works for Marozia and he answers in the affirmative. She asks if the machine can work outdoors in very wet conditions. Rigo says that he has heard from its operators that it works well.

Amelika tests the machine on a sunny day and buys it from Marozia Ltd for $10000. It turns out that the machine does not work well in wet conditions. Amelika contacts Marozia Ltd and tells it about the conversation in the garage and asks for the money she paid for the machine to be returned.

Marozia Ltd thinks that it has done nothing wrong and contacts you. Offer legal advice based on the Contract and Commercial Law Act 2017 and the case law discussed in class that will allow Marozia Ltd not to return the money.