Question

Amanda bought a small bakery business. It was surveyed by George, a surveyor for Sweet Homes Building Ltd, a surveying company. Amanda paid Sweet Homes for a surveying report from George. The report stated that there were no major structural problems and that the premises were worth the asking price. It concluded, ‘This report is for valuation purposes only and will not give rise to any legal liability.’ Amanda contracted with Happy Kitchen Fitters Ltd (HKF Ltd) to refit the kitchen. They installed a new oven manufactured by Oliver Ltd. On moving in, Amanda discovered severe and large scale of dry rot when she fell through a storeroom floor and broke her leg. Her injuries and the eradication of the dry rot delayed the opening of the premises for several months. A week after the business eventually opened, the new oven malfunctioned. As a result, a wedding cake was badly burnt, leading to a claim for damages for breach of contract against Amanda, by the bride’s father. HKF Ltd has gone out of business and was in the process of liquidation.

Answer 1

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