Jessica tells her that ‘the restaurant has been making $10,000 per year in profits’.
She hands her a box of papers and says ‘Here are the accounts, you can check for yourself if you like’.
Angela trusts Jessica and only checks the accounts for 2007, which do show profits of $10,000
Relying on what she has told them, Angela decides to purchase the business.
However, after a few months, when business is very slow, she has another look at the accounts and realises that the business has only been making $2,000 per year for the last 5 years (since 2008).
Advise Angela of her common law rights.