Law of Contract Essay Example | Topics and Well Written Essays - 1500 words - 1

Law of Contract - Essay Example Joanne, Vanessa’s business advisor and representative, Arnold hid the fact that the wood panelling in FF’s sauna facilities are rough, unpleasant to the touch, and require repairs, such that without examining the facilities further, Joanne reported to Vanessa that the facilities were â€Å"first rate†. Furthermore, Arnold also informed Vanessa of further improvement he plans to have done on FF prior to the sale, particularly the installation of massage facilities, which he eventually forgone when he discovered the costs required for these improvements. Thus, Vanessa, in believing she was entering into a good bargain bought the leisure centre. It was only after buying FF however, that Vanessa discovered several work needed to be done on the leisure centre, particularly the need to repair the rowing machines, which costs  £10,000 and the need to re-panel the sauna costing  £5,000, leading Vanessa to believe she was misled by Arnold into entering their contract of sale. The main issue is therefore whether or not Arnold, in failing to disclose the facts that (a) 20 of the 100 rowing machines were not working, (b) that he no longer intends to install additional massage facilities, and that (c) the wooden panels in the sauna are not in good condition, has committed either a breach of contract or misrepresentation against Vanessa. Furthermore, other issues are also present, particularly whether or not Joanne, in failing to properly examine the leisure centre and reporting it as â€Å"first rate† to Vanessa renders her liable t owards the latter. And whether or not, Vanessa has suffered losses resulting from the bargain; and if so, if she can claim damages for her loss. Given the contractual relationship between the parties, a breach of contract would have been committed by Arnold if it can be shown that he violated an expressed or implied term in their transaction, or a collateral contract resulting from their transaction. Hence, if a contract was drawn and terms