Problem
A. If a contract is entered into following the making of the following statements, are the following statements misrepresentations, and if so what type? Give reasons for your answers.
B. An advertisement for a new restaurant called 'Paradise' states that "The cuisine is heavenly, the wines divine and the service provided by angels"
C. Blyth is selling her house which is on a good size block of land. When asked by a potential purchaser if the block could be subdivided Blyth replies "Yes, probably, but it would be subject to council consent. "Blyth knows that due to the zoning of the block, the council will not give consent for subdivision and that is why she is selling!
D. Romeo works in a clothes shop owned by Capulet. A shipment of shirts has arrived from a new supplier, and Romeo asks Capulet what they a made of, to which Capulet replies, "hand-woven silk". The shirts are very popular and Romeo tells all the customers that the shirts are made of hand-woven silk. The next day three customers return the shirts having discovered the shirts are synthetic.
E. Paris is negotiating to buy Juliet's accountancy practice in Perth. Juliet tells Paris that the Perth Glory soccer team is one of her clients. Paris knows that this is untrue but goes ahead and buys the practice anyway.
F. A young couple wishes to take out a sizeable home loan and, at the insistence of the bank, your client, asks the husband's elderly Chinese parents to guarantee the loan. The parents have very limited spoken and written English. Under what circumstances would you advise your client, the bank, that they could successfully rely on this guarantee should the young couple default on their loan?