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8 marksContractual Terms and Vitiating Factors

CAPE Law Unit 2 · 2008 (second paper) · Paper 2 · Question 7(a)

Rajiv negotiates to license a gas station from Petroleum Experts Ltd (Pet Ex). The Managing Director represents that the station sells up to 60,000 litres monthly and the store averages 75,000.00 monthly. Rajiv finds sales are only 40,000 litres and 35,000.00 respectively. Following conflict over rent and repossession, Rajiv threatens legal action on grounds of warranty and negligent misrepresentation.

Explain, with reference to decided cases, the effects of warranties on the contract between Pet Ex and Rajiv.

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Other parts of this question

  1. 7(b)Explain, with reference to decided cases, the effects of collateral terms on the contract between Pet Ex and Rajiv.[8 marks]
  2. 7(c)Explain, with reference to decided cases, the effects of negligent misrepresentation on the contract between Pet Ex and Rajiv.[9 marks]

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