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Wesley Has Decided to Sell His IT Business and Retire

Question 10

Multiple Choice

Wesley has decided to sell his IT business and retire. Before buying the business, Francine inquires about recent industrial action taken by the employees in the warehouse and asks whether all labour disputes have been finally settled. Wesley informs her that all disputes have been settled, but forgets to mention that the employees in the software lab have been considering taking industrial action after the successes of their colleagues in the warehouse. To avoid liability in the event the software technicians strike, Wesley is considering inserting a clause into the contract. According to section 3 MA, terms which exclude or restrict liability or the available remedies for misrepresentation, 'shall be of no effect except in so far as it satisfies the requirement of reasonableness as stated in section 11(1) of the Unfair Contract Terms Act 1977'. With which of the following clauses could Wesley evade the application of section 3?


A) 'The buyer has not relied on any statements made by the seller.'
B) No error, misstatement or omission in any preliminary answer shall entitle the buyer to annul the sale.'
C) 'This agreement contains the entire agreement and understanding between the parties respecting the subject matter hereof and supersedes and cancels all previous negotiations, agreements, commitments and writings in respect thereto.'
D) None of the options given is correct.

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