Description
Nadiaoperatedabusinessmakingorganicjamswhichweresoldunderthebrand‘Nadia’s Jams’ in shops across the country. Her jams were highly respected. In early 2021 she decided to retire. She put the following advertisement in the local newspaper:
‘FOR SALE long-established jam-making business: sale includes full kitchen equipment, kitchen premises, the goodwill of the business and a loyal customer base of quality grocery retailers.’
Tina saw the advertisement and visited Nadia who gave her a tour of the business. Nadia said that the jam-making business made profits of about £70,000 per year. Nadia also made much of the fact that one of her longest-standing customers was The Tasty Food Shop, a leading central London store.
Tina signed a contract to buy the business. After taking over, she made significant expenditure on advertising the ‘Nadia’s Jams’ brand. The contract did not refer to past profits or any important customers.
Shortly after this, Tina discovered that:
1. Although profits had been at the £70,000 level some years previously, by the time the contract was made, Nadia’s business had barely made any profit.
2. Shortly before the contract with Nadia was signed, The Tasty Food Shop had stated that they would no longer buy any jam from Nadia.
Advise Tina of her rights and remedies against Nadia (if any).
Footnotes and bibliography are not included in the word count
Reference should be in oscola style
