Question 1
Peter entered into a contract with Howard, an auctioneer. The contract stated that Howard was to sell some vacant land that Peter owned. The catalogue for the auction set out the conditions for sales at the auction and said that the auctioneer had no authority to make representations on behalf of anyone whose property was to be sold at the auction.
Robert wanted to bid on a property; he asked Howard whether the property was zoned for commercial development. Howard said that it was, but Howard was mistaken. There was only zoning for agricultural use. Robert bought the property at the auction, relying on what Howard
had told him about zoning. But once he discovered that he could not use the property for commercial purposes, he refused to pay for the property.
Can Peter enforce his contract with Robert?
Question 2
Susan and Joyce were both accountants carrying on business as sole proprietors. They decided to enter into an arrangement that would reduce their expenses.
i. they rented premises consisting of three offices and a reception area, where they both could practice. Each signed the lease as a tenant.
ii. They hired a secretary to work for both of them.
iii. They will each contribute equally to the office expenses
iv. Apart from those shared expenses, all expenses are the responsibility of the person incurring them
v. All decisions regarding management of the office such as the salary of the shared secretary require the consent of both Susan and Joyce.
vi. Each will bill and be exclusively entitled to the fees received in return for their own work. Is this a partnership? To be certain, what other information would you need?