Steve sells Bruno a car. After they agreed on the deal, but before the money was handed over, Bruno asks Steve is the car has any oil leaks, Steve says it does not. The car did have leaks and Bruno wants to sue Steve. Which one of the following cases would best apply to this situation:

Question

BlackTom AI · Accepted Answer

The question presents a scenario where, after agreeing on a car sale but before payment, the seller assures there are no oil leaks, only to later reveal there are leaks. The task is to identify which case best applies to this situation.

Option a: Waltons Stores (Interstate) Ltd v Maher. This case is primarily about equitable relief and misrepresentation in the context of a building or construction contract where one party seeks an order to fulfill a contract or compensate for reliance. It does not precisely address a warranty or misrepresentation about the quality of goods after a contract has been formed in a sale of goods, so it is not the best fit for this car-sale situation.

Option b: Wigan v Edwards. This is a case dealing with misrepresentation and the standard of proof required for a party to rescind or claim damages in a contract. While it involves misrepresentation, the essence of the present scenario is about a warranty/representation made after the contract was formed regarding the quality of the goods, which is more specifically addressed by another case.

Option c: Rose and Frank Co v J R Crompton & Bros Ltd. This case concerns the distinction between a legally binding contract and a mere statement of intention or an honourable pledge, emphasizing that not all assurances labeled as contracts carry legal obligations. It does not directly address misrepresentations about the quality of goods made after contract formation in a sale.

Option d: Roscorla v Thomas. This case is the classic authority establishing that a representation or affirmation about the quality of goods made after the contract has been formed does not automatically create a warranty or give rise to a misrepresentation claim. In other words, an after-sale statement about the condition of goods cannot be relied upon to induce the contract or form the basis of a warranty, which aligns with the present scenario where the seller’s post-agreement statement cannot support a successful suit for a pre-existing defect not disclosed at the time of formation.

In summary, options a, b, and c involve doctrines or distinctions that are less directly applicable to a post-agreement misrepresentation about the quality of goods in a sale of a car. Roscorla v Thomas (option d) directly addresses the principle that statements about quality made after the contract are not warranties, making it the most fitting authority for this scenario.

MCD2070 - T3 - 2025 Intention and Consideration Quiz

Steve sells Bruno a car. After they agreed on the deal, but before the money was handed over, Bruno asks Steve is the car has any oil leaks, Steve says it does not. The car did have leaks and Bruno wants to sue Steve. Which one of the following cases would best apply to this situation:

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