Where a misrepresentation in a sale of business relates specifically to the gross profit margin and the vendor knows the purchaser is heavily geared and dependent on that margin for viability, there is a direct causal nexus between the misrepresentation and subsequent trading losses — the representor does not merely become an insurer of the purchaser's success but is liable for losses flowing from the specific nature of the misrepresentation. However, damages for interest on borrowings beyond the reasonable cut-off date for trading require evidence of the effect of selling the business on loan obligations.
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