Session 17 Essay Example | Topics and Well Written Essays - 500 words

Session 17 - Essay Example Had Steve handed over the records to be looked at by a professional accountant, the actual details would have come to light much sooner and it is highly likely that Steve would have reconsidered and not bought out Jack’s business. UK Law holds that if a representation was made during negotiations, which later transpire to be no longer true, there is a duty to make a correction4. Under UK Law the misrepresentee (Steve) can sue for damages as well as any losses resulting for his relying on the misrepresentor’s (Jack’s) statement about the state of the business5. Although Steve did not totally rely on Jack’s statement and only purchased the business after Rob had given his OK, nevertheless Jack knowingly did make a statement that ordinarily would have been enough to persuade Steve to buy the business. Jack’s statement was a lie and masked his fraudulent intentions. The remedies could be compensation for damages (for example loss of ?30,000 in yearly tu rnover) or even a rescinding of the sale. Steve has heard that Jack is intending to join a pharmacy at a local superstore so clearly he has found someone to look after his pedigree dogs. It was held in HIH Insurance Ltd v Chase Manhattan Bank6 that it is never possible to avoid liability for false misrepresentation.