Law of Contract

Formative Essay Assignment (this contract essay is on misinterpretation and for the three scenarios address the three types of misinterpretation)

Lester owned a business which sharpened lawnmower blades. Tony was interested in buying the business. Lester told him that the business made £50,000 last year. Based on this, Tony agreed to buy the business for £200,000. Six months later, Tony was having problems making the sort of profits he was expecting as a competitor had developed a laser sharpener which was cheaper and better than the process Tony had purchased from Lester. Tony carefully examined the books and discovered that the business had only made £45,000 for the year before he bought it and that Lester had made an error with his addition. 

Lester purchased a Mazda MX5 from Keith for £5000. One week later, Lester was in an accident in the car. Prior to making the contract, Keith had represented to Lester that the car was a 2009 model based on the car’s registration documents. When Lester was getting the car repaired, he discovered that it was, in fact, a 2008. 

Lester purchased a holiday cottage from Rob for £250,000. Rob had stated that the cottage could be connected to the gas supply but it actually lacked the proper access. It will cost Lester £50,000 to buy access to the gas supply system. Lester has changed his mind about the cottage and would like his money back. 

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