Assignment title: Information


Adam wants to sell his flower shop business to Eve. Adam states that the flower shop turns over $600,000, and showed Eve a few monthly receipts to show that the company is turning over up to $50,000 per month on average. What Adam did not tell Eve was that during three months of the year during winter the flower shop only makes approximately $30,000 per month due to less variety on offer to customers. This impacts on the total annual turnover of the flower shop so it actually makes approximately over $540,000 annually in turnover only.Eve bought the business from Adam on the evidence of Adam's claims, and also on the belief that she can do a better job than Adam and increase the shop's sales twofold.Months after purchasing the business from Adam, Eve realised that the business only turns over so much, and is barely enough to keep the business running and pay its overheads. The business was therefore unprofitable.a. Advise Eve of her rights, if any, against Adam and any remedies available for her under common lawb. Would your advice be different if Eve has asked Adam the exact turnover of the business?