Lecture 5 BFA601 Semester 1 2018.pptx

Misleading conduct in contract law misleading conduct

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Misleading conduct in contract law Misleading conduct in contract law Endeavour to prove that the statement amounted to a fraudulent misrepresentation; and Finally, if the off ending statement was made in trade or commerce, pursue remedies for ‘statutory misrepresentation’ under the Commonwealth Competition and Consumer Act 2010 known as the Australian Consumer Law (ACL) or the Fair Trading Acts, where damages are available (if no fraud was intended) Other remedies (particularly where the is innocent misrepresentation) (5.20) Other remedies (particularly where the is innocent misrepresentation) (5.20)
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Misleading conduct in contract law Misleading conduct in contract law Occurs when a person makes a statement without taking reasonable care to ensure the accuracy of the statement where the maker of the statement owes a duty to the person receiving it Esso Petroleum Co Ltd v Mardon [1976] Negligent misrepresentations (5.23) Negligent misrepresentations (5.23)
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Misleading conduct in contract law Misleading conduct in contract law Citing Mutual Life & Citizens Assurance Co Ltd v Evatt [W]henever a person gives information or advice to another upon a serious matter in circumstances where the speaker realises, or ought to realise, that he is being trusted to give the best of his information or advice as a basis for action on the part of the other party and it is reasonable in the circumstances for the other party to act on that information or advice, the speaker comes under a duty to exercise reasonable care in the provision of the information or advice he chose to give. Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (5.24) Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (5.24)
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Misleading conduct in contract law Misleading conduct in contract law What happened? Why was there a breach of a duty of care? Why was there negligent misrepresentation, and how did this relate to a contract? Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (5.24) Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (5.24)
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Misleading conduct in contract law Misleading conduct in contract law Heard prior to ‘Parramatta’ a special relationship exists ‘where it is plain that the party seeking information or advice was trusting the other to exercise such a degree of care as the circumstances required, where it was reasonable for him to do that, and where the other gave the information or advice when he knew or ought to have known that the enquirer was relying on him’. Hedley Byrne & Co Ltd v Heller & Partners Ltd (5.25) Hedley Byrne & Co Ltd v Heller & Partners Ltd (5.25)
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Misleading conduct in contract law Misleading conduct in contract law Cases involving auditors Reliance on the statements made by auditors, a duty owed to the company not to outsiders Unlikely that a duty extends to outsiders, even where it is foreseeable that others might read the accounts Note Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) Negligence (5.26 - 27) Negligence (5.26 - 27)
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