Upon the sale of the boat between DJ and CJS Inc. a contract was created. This contract is likely written due to the amount of money being …show more content…
If such a defect was underlying, was it known to the CJS Inc.? DJ should also consider pursuing compensation using a sub-classification of tort law and depending on relevant facts, deceit, fraud or a product liability claim could be made. Correspondingly, under negligence law, DJ may argue that CJS Inc. sold him a defective product that was not fit for its intended and known purpose. DJ could also argue misrepresentation, as he was induced to enter into the contract based on representations (or omissions) made about the quality of the ship. Since there is no evidence of fraudulent intent, DJ would likely argue there was innocent or negligent misrepresentation. However, CJS Inc. could claim in defence that DJ took on a voluntary assumption of risk by purchasing a used ship, but this is unlikely to succeed as no explicit acknowledgment of the risks were made by either