Diana entered into a contract with Floyd to purchase an antique chest of drawers

Question

Diana entered into a contract with Floyd to purchase an antique chest of drawers for $2,000. Diana believed that it was previously owned the Governor-general and thought she was getting a bargain. Floyd had made no representations as to the previous history of the chest of drawers. Diana later found out that it was never owned by the Governor-General and wished to return it to Floyd. Floyd refused. Advise Diana. Would your advice change if Denise were an antique dealer and had a sign on the chest –owned by the first Governor-general’?

Explanation / Answer

In this case Floyd does not have any representation regarding the fact that it was owned by any Governor general hence it was just a belief that Diana possessed and in this case Diana cannot bring any charge of fraud against Floyd. In this case she cannot return it to Floyd based on her belief.

If Denise is an antique dealer and had a sign in the chest owned by the first Governor General then Diana could have charged Denise of she got to know that it was never owned by the Governor General and would have also been eligible to sue Denise because it would have been a breach and a fraud.

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