Jesse is considering buying his aunt Karen’s house as an investment. During the negotiations, Karen states, “This house is worth £200,000 and I’ve had two separate valuations from estate agents verifying that, but since I love you so much I’ll sell it to you for £180,000.” Karen has not received any valuations from estate agents and the house is worth only £120,000. Jesse buys the house for £180,000. Two weeks after Jesse has completed the sale and moved into the house, he discovers that Karen did not receive any valuations from estate agents. The same week, Jesse discovers that the value of the house has been reduced to £80,000 due to serious damage caused by the collapse of a supporting wall. At this point, a buyer offers £80,000 for the house. Jesse does not sell the house until three months later, when Jesse only receives £75,000 for the house because of a general fall of the property market. Advise Jesse.