Tom and Jerry are brothers. Last week, Tom decided to buy a car. He saw one advertised in the local newspaper as follows: ‘Black, MBG sports car, 30,000 miles, excellent condition, £1,000’ Tom only has £900 so asks if he can borrow the remaining amount from Jerry. Jerry agrees but states that he requires repayment in two months as he is going away on holiday. Tom agrees. Two months later Tom refuses to pay Jerry the money he owes stating that ‘all agreements between family members are not legally binding’. Tom has also found out that the car has had some minor bodywork completed prior to his purchase and now wishes to sue its former owner.

Briefly explain with examples what the legal presumption is, based on Tom and Jerry’s domestic agreement. Discuss how this presumption differs from commercial agreements.

Given that the car bodywork was minor this will be considered a breach of a warranty. Briefly explain with examples the legal significance of breaching a warranty such as that outlined in the scenario.