Reference no: EM133531133
In relation to each of the following statements, discuss whether there has been a misrepresentation, the type of misrepresentation and the legal consequences of the misrepresentation.
1. Polly wants to sell his scrap metal business to Soni. Polly told Soni that the annual sales for 2021 were $1,000,000. Polly knows that the sales were only $500,000 for 2021.
2. Would your answer to Question 1 be different if Polly said nothing about the annual sales for 2021 but told Soni that the annual sales for 2022 were expected to be $1,000,000.
3. Calpurnia wants to sell her block of land to Brutus. Calpurnia told Brutus that the local town planning regulations allowed the land to be used for a factory. In fact, under the regulations, the land could be used only for the building of houses.
4. Babe sells shirts in her clothes shop. Fury asked her what the shirts were made from. Babe said 'I do not know but I think they are silk'. The shirts are actually made from fake silk but Babe did not know that.
5. Camroon had shares in a small mining company which is not listed on the stock exchange. He told Julie that the company had just discovered gold. Two days earlier, Julie had read an article in the South Pacific Financial Review which stated that the company had just been granted a permit to explore for gold but had not yet discovered gold, so Julie did not believe Camroon's statement. Nevertheless, Julie bought the shares. At the time of the Camroon's statement, the company had not discovered gold.
6. Jimmy sells household electrical goods. Pele wanted to buy a refrigerator. Jimmy told Pele that a particular refrigerator he had on display in his shop came with a two year warranty. Later on the same day, Jimmy discovered that the refrigerator came with only a one year warranty. Jimmy said nothing further to Pele. The next day, Pele bought the refrigerator.
7. Would your answer to Question 6 be different if Jimmy had telephoned Pele to tell him that the refrigerator had only a one year warranty and Pele bought the refrigerator anyway?
8. Joti, a shop owner, sells a new type of drink called "Fantasy". Joti said to his customer, Daisy, 'If you drink Fantasy, your eyes will shine and look more beautiful'. Since Daisy started drinking Fantasy, she has broken up with her boyfriend and lost her job in a marketing and public relations firm.