Name: Huong Tra Pham
Factual Analysis #1 – Contract Law
Honest Harry’s Autos v. the Johnson’s
The main legal issue is fraudulent misrepresentation. Did the Johnson’s make a false statement
of fact or use misleading silence to deceive Honest Harry into an agreement to purchase his car?
Honest Harry will seek damages from losses for paying more for the car than it was worth and
harms to his reputation as a businessman.
The Johnson’s made a representation of fact to Harry stating that the car had never had so much
as a scratch. This representation was false in fact with the knowledge of the defendant since Mr.
Johnson got the car fixed after it was crashed. The defendant intended for the plaintiffs to act on
the representation by entering an agreement. As a result, Honest Harry’s purchased the car in
reliance upon the false representation and thereby suffered a detriment.
