Posted: July 13th, 2023

boat posted by Richard, a retired boat mechanic. The advertisement read

Whilst browsing the Internet, Terry saw an advertisement on Gumtree (an Internet trading site) for the sale of a used ski boat posted by Richard, a retired boat mechanic. The advertisement read: "Immaculate ski boat with 150hp [horsepower] in board engine. All safety equipment and trailer included. Only $14,000 (negotiable)! You won’t find a better bargain. SMS or call 0400 007 007 for inspection."Terry sent a message to Richard and they agreed to meet so that Terry could see the boat. While inspecting the boat, Terry remarked that Richard appeared to have taken very good care of the boat. Richard gleefully agreed, adding that he had regularly serviced the boat himself and that he had experienced no mechanical problems, as the engine was “only 12 months old.”Richard made this statement about the age of the engine based on the information supplied to him by the original owner of the boat. As Terry was a member of a water ski club, he also enquired how many skiers the boat could pull at one time. Richard replied "I bet she would definitely pull up to four skiers at once. I can guarantee you that."After having a final look over the boat, Terry said "I'll take her for $13,000". Richard responded "Good man!" and handed Terry the "necessary paperwork", which Terry signed without properly reading it.After payment and delivery of the boat, Terry took some friends water skiing. Unfortunately, this did not work out as expected. The boat could not pull more than two skiers at once, and - after 20 minutes of use - the engine began to vibrate and to emit thick smoke before stopping completely.Terry took the boat to a repair shop where he was told that the engine was at least three years old and had only 110 horsepower. The engine was so worn out and in such a poor condition that it could not be repaired.Terry is unhappy and starts reading the document he has signed at Richard's. He discovers that it only states the price, registration and serial number of the boat. No other details of the boat are recorded or referred to in the document; however, it contains the following clause: "Boat is sold as inspected. No warranty or condition implied by statute, common law, or otherwise is given as to fitness for purpose, quality or performance of the boat." Until now, Terry was not aware of this clause.Assuming there is a contract between Terry and Richard, explain if and what grounds and remedies exist under common law or Sales of Goods legislation which would allow Terry to take action against Richard.

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