Assignment Task: Harrity and Northeast Yachts 1998 Ltd. v. Kennedy 2009 NBCA 60
Robert Harrity, the principal of Northeast Yachts, acted as an agent in the sale of a Bayliner boat owned by Malcolm Clark and sold to Margaret Kennedy. As Kennedy looked over the boat, Harrity stated that it had a new motor, a new drive, and a painted hull. The boat was purchased after having the boat surveyed by a marine surveyor.
Unfortunately, after five hours of use the motor broke down with several things going wrong. It turned out that the engine was not new but rebuilt and Kennedy sued. Harrity claimed that when he stated that the engine was new he meant it was new to that boat.
What is the basis for Kennedy's complaint, the arguments for the parties and the likely outcome? How would it affect your answer to know that after the sale when the bill of sale was drawn up a paragraph was added. This document stated that the boat was inspected, that the boat was bought "as is, where is," and that there were no other representations from the agent with respect to the transactions.