Law
In May 2011 James moved to the beautiful seaside resort of Towie. Soon after, he entered into negotiations with Ian for the purchase of a boat-hire business that the latter had advertised for sale. The main asset of the business was a speedboat. At various meetings Ian made a number of statements to James about the speedboat including, that the engine has just been refitted and should last another 10 years and that the business has an average turnover of £50,000. Ian then added, ‘But don’t let me stop you from examining the account books.’ James decided not to examine the books and purchased the business in November 2011. In April 2012 the engine seized up and needed replacing at a cost of £15,000. Because of exceptionally bad weather, the boat was only hired out on only four occasions during the months of July and August 2012, and as a result the turnover for the financial year will be no more than £30,000.
In December 2011 James contracted with Dipstick Computers Ltd to install a sophisticated business computer system at a cost of £30,000. Due to a faulty mechanism in the computer, David could not retrieve his business files. As a result, many of his clients took their business elsewhere. This loss of business cost him £20,000. Further, he had just recently signed a very profitable deal with a river cruise boat company, but as he was unable to retrieve a specially formulated business plan for the company, they decided to forego his services. Because of this he incurred losses of some £29,000.
In January 2012 James hired United Construction Company Ltd (‘UCCL’) to build a new extension to his business office; to be completed by February 2012. Under the terms of the contract UCCL was to supply special solar panels for the job. UCCL decided to import these solar panels from the Federal Republic of Bunga, in Africa. James made a down-payment to UCCL of £2000 i.e., half of the full purchase price. However, because of a recent civil war in Bunga, delivery of the solar panels became impossible. UCCL refuses to refund James any of the money.
In March 2012 James decided to join a new fitness and health club, called the Towie Training Centre (‘TTC’), which had recently opened. Once inside, after signing the membership contract, he was issued with an identification card, on the back of which was written, ‘only under exceptional circumstances do the owners accept any responsibility for accidents caused whilst members are using the gym’. He then goes to the locker rooms where the attendant there gives him a ticket which states that the club is only liable to the extent of £200 for property left in their care. As he enters the gym he trips over some equipment lying on the floor and injures himself. Upon returning to the changing rooms he finds that his locker has been broken into and his Rolex watch, valued at £3,000, stolen. TTC now refuse to accept any responsibility for James’s watch or injury.
Advise all the parties involved as to their contractual rights
