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First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
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6. Misrepresentation |
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6.3. Negligent misrepresentation |
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Read the facts and the question and then choose the best answer. A buys a year-old racehorse and places it in the care of B's stables. The purchase is purely an investment and A does not take a close interest in the horse, going only occasionally to see it training or racing. When the horse is three years old, C offers to buy it. During their discussions A, who has never been told of any illness, says that the horse has always been healthy. After buying the horse, C discovers that, a year before, it had a serious respiratory infection which can cause long-term damage. C immediately informs A that he is avoiding the contract. He also wants to claim damages from A. Does the common law or equity entitle C to the relief he wants? |
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