Question

In: Finance

8. We revisit the case of Marcel and Yvonne that we looked at in an earlier...

8. We revisit the case of Marcel and Yvonne that we looked at in an earlier tutorial topic relating to the parol evidence rule and collateral contracts. Here are facts:
Marcel wants to buy a used car. He knows the make, model and colour of the car he wants to buy. He visits several car dealers who can supply the type of car he wants.
In discussions with one dealer, Yvonne, she tells Marcel that if he buys the car from her, she would fit the car out with high quality new tyres.
Marcel decides to buy the car from Yvonne, but the written agreement he signs with Yvonne makes no mention of this promise.
A month after the purchase is completed, and having driven 3,000 km in the car, Marcel is advised by his motor mechanic that the tyres on the car are actually second hand and of inferior quality.
Marcel wants to make a claim against Yvonne.
Required
(a) Recall from earlier topic: explain why it would be difficult ( though not impossible) for Marcel to sue
Yvonne successfully for breach of contract.
(b) Advise Marcel whether he can sue Yvonne for misrepresentation.

Solutions

Expert Solution

A.

In the given case, we must look in the Parol evidence rule and collateral contract. Parol rule preserves the genuinity or integrity of a written document. This helps secure the originality of written contract. This caused unfairness on opposite parties sometimes.

There are several exception to this case. In the given case, if there is collateral agreement, ie., the agreement consist of both oral and written, it may be considered. The exception states that extrinsic evidence is permitted to show if it can be proved by both parties that the contract consist of oral and written terms.

Marcel can use this exception to sue Yvonne for damages and claims

B.

You can give answer by providing definition of the term misrepresentation and its elements. Where, by using IRAC (Issue, Rule, Application and conclusion) strategy, appliying the "Rule" which applies test to the issue.

Misrepresentaiton refers to action of giving false or misleading account of nature of something. In the given case, the tyre hasn't been replaced and hence given false statement. The rule of general principle apply as per IRAC, it is clearly shown that the party cannot prove his negligence and hence can be sued for misrepresentation.


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