Advise abel fully on legal position in respect of contract


Assignment task: Bel has fond memories of going to the races with their father as a young child. Abel studied hard during their time at university and is now a successful chartered accountant. Abel is eager to invest in a racehorse as part of their investment portfolio. Abel consults with Bheki and Chila, who promote themselves as experts in racehorses. Bheki and Chila Abel that they recently bought a thorough-bred racehorse, registered under the name of Flash, and that they want to sell Flash. Abel is excited upon hearing this, as Abel is aware that Flash has an excellent record of winning races. Abel asks Bheki and Chila why Flash did not race recently, to which Bheki and Chila reply that all racehorses have resting periods during which they do not race. What they did not tell Abel was that Flash was resting because of a leg injury. This information persuades Abel to buy Flash for R3 million. Abel enters Flash for the Jubilee race with much anticipation. Unfortunately, Flash's performance during the Jubilee race is dismal, with Flash ending up in fifth position. Shortly after the race, another investor empathises with Abel, telling them that Flash's poor performance was expected, as Flash was kept off the racing circuit for too long whilst recovering from a leg injury. An upset Abel immediately contacts Bheki and Chila, stating that they never would have bought Flash if they had known the truth. Abel tells Bheki and Chila that they want their money back, but both Bheki and Chila just laugh at them and walk away. Abel approaches you for advice. Advise Abel fully on the legal position in respect of the contract and whether Abel can rescind the contract. Include in your answer the duties of the sellers. Refer to relevant sources of law, including relevant case law. 

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Business Law and Ethics: Advise abel fully on legal position in respect of contract
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