Question

Andy persuaded his grandmother Mabel to sell him her car for $1,000. Both parties knew that the car was worth a lot more than that. Mabel didn’t need the car and wanted to help her only grandson so she agreed to sell. A week later she discovered that Andy was planning to sell the car to a friend for $7,000.

What are her potential claims against Andy?

• Fraud.

• Misleading and deceptive conduct in terms of s9 of the Fair Trading Act 1986.

• Undue influence.

• Misrepresentation under the Contract and Commercial Law Act 2017.

Answer 1

Solution:

Undue Influence:

Andy persuaded Mabel's decisons because of family relationship (Andy was Mabel's grandson). Due to emotional ties, Andy took powerful advantage of buying the car at a very lower rate and infactseeling the same to his fried at a higher rate(which he had not discussed with his grandmother before buying the same).

Misleading and deceptive conduct:

Andy is not misleading or deceiving his friend(consumer) by selling the car. \

Misrepresentation:

Means that there is no intention to deceive/gain any undue advantage. (But Andy does it)

Fraud:

False statement given by Andy to his grandmother with a clear intention of deceiving.

Answer is Fraud and Undue Influence.