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As John\'s sister has the authroity to enter into a legally binding contract on

ID: 374154 • Letter: A

Question

As John's sister has the authroity to enter into a legally binding contract on John's behalf, she has assured Bob over an email message that the home will be winterized before the cold weather arrives. This has been assurance to the binding point based on which Bob signed the agreement of purchase. As Bob discovered that he home was not winterized which resulted in a damage of 40000 $, Bob can have a claim against John for misrepresenatation as he is indirectly responsible for his sister's assurance.

Explanation / Answer

John sends Carol an e-mail message stating that if Carol will promise to pay him $500,000, John will sell his vacation home in Big Bear to Carol. John’s e-mail message also says that if Carol wants to buy his vacation home, she must e-mail his sister and let her know that she wants to buy the home by December 1, because John will be out of the country on an African safari with no e-mail access. John’s e-mail message provides his sister’s e-mail address to Carol, but is not courtesy copied to his sister. Before John leaves on safari, he signs a power of attorney authorizing his sister to sell his vacation home in his absence. On November 30, Carol replies to John’s e-mail stating that she wants to buy his vacation house. On December 6, John’s safari reaches a small town where John can telephone his sister. John asks his sister whether she has heard from Carol about buying the vacation home. His sister tells him that she has not heard from Carol. John instructs his sister to sell the vacation home to Bob. John explained to his sister that Bob was young, but had inherited a lot of money and previously said he wanted to buy the vacation home. John is anxious to sell the vacation home before the end of the year for income tax purposes. On December 18, on behalf of John, John’s sister enters into a written contract with Bob to sell the vacation home to Bob (assume that John’s sister has the authority to enter into a legally binding contract on John’s behalf). Before Bob signs the purchase and sale agreement, Bob tells John’s sister that he is concerned that the vacation home needs to be winterized to protect it during the winter, as the sale will close in December and Bob will not go to the home until the spring. John’s sister assures Bob in an e-mail message that the vacation home will be winterized before the cold weather arrives. After the sale closes and spring arrives, Bob goes to the home and discovers that the home was not winterized. The home suffered $40,000 in damage because it was not winterized. Does Bob have a claim against John for misrepresentation? Explain why or why not.

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