Introduction
Statements made prior to making a contract, as a rule, are not binding for the parties. At the same time, false or misleading statements made with the purpose of inducing another to enter into a contract can be found invalid, giving an innocent party the right to various remedies under the law. Under the common law, a victim of misrepresentation may be entitled to rescind the contract. Legislation, such as Australian Consumer Law, sets a pecuniary penalty in the event of breach of any of its provisions relating to consumer guarantees or false/misleading statements. Thus, the relevant case law ...
