Question

Jack wished to purchase an automobile. He saw a 2016 Mustang Convertible advertised for sale in the local newspaper. Jack talked to the owner, Mary and advised her that he didn't know much about cars but needed a reliable, comfortable car for long distance travel. Mary confirmed that she found her car comfortable and fun) and that it was probably what Jack needed. Jack then examined the car and agreed to purchase it from Mary for $25,000.00. They both signed a short contract which contained a clause stating that the car was sold "as is and with no warranties whatsoever except as expressly set out herein". The agreement did provide that Mary would be responsible for obtaining a mechanical safety certificate before delivering the vehicle to Jack. Assume The Sale of Goods Act is applicable. (i) Mary did obtain the certificate and notified Jack that the car was ready. However, prior to Jack picking up the vehicle, it was mysteriously damaged. Who is responsible to fix the damages as between Jack and Mary? (ii) If Jack found that the car was uncomfortable and not suitable for long distance highway travel, what action, if any could he bring against Mary and what would be the likely outcome? (iii) If, the day after Jack purchased the car, the transmission failed and the engine seized up, what action could Jack take against Mary. What remedies could he claim and what defences would Mary likely raise? Explain. (iv) Two weeks after purchase the car was repossessed by the St. Catharines Savings Bank. The Bank discloses that it had registered a Chattel Mortgage against the car for an outstanding loan of $20,000.00. What remedies would be available to Jack? Give the legal basis for your answer. Be certain to include the applicable principles as part of your answers.

Answer 1