Business/commercial law essay question and answer

Kamau advertised the sale of his farm. He was approached by Keter who wanted to buy the farm. In the course of negotiating the price. Keter asked Kamau how many sheep could be reared on the farm and Kamau replied, “I have not used the farm for sheep rearing but I think it could support 2000 sheep.”

Keter bought the farm and immediately purchased 2000 sheep to rear on it. However, the firm is unable to accommodate the 2000 sheep and Keter is aggrieved and intends to sue Kamau for misrepresentation.

Advise Kamau.

This problem is based on statements made by parties in the course of negotiations leading to a contract.

In this case Kamau made a statement which influenced Keter to purchase the firm, but the statement turns out to be untrue and Keter feels aggrieved and has threated to sue Kamau for misrepresentation.

It is apparent that Kamau‟s statement is not an assertion of fact. It is an opinion for which Kamau cannot be sued.

My advise to Kamau is that he is not liable even if sued by Keter as his statement was a mere opinion which does not amount to misrepresentation.

My advice is based on the decision in Edindgton V. Fitzmaurice.

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