MISLEADING AND DECEPTIVE CONDUCT RULING

Author: Valentina Misevska

Publish Date: February 7, 2006

A court has found that a vendor of a business, engaged in misleading and deceptive conduct by omitting to provide a purchaser updated financial information as to the income and prospects of the business being sold.

This case highlights the importance of providing complete and accurate disclosure of financial information in sale negotiations and identifies why it is important not to make any warranties as to expected future income or profit. 

It is also another timely reminder that misleading and deceptive conduct can occur by omitting to do an act as well as by committing an act.

For a detailed look at the this case click here or visit: http://www.harriswheeler.com.au/web/article_2931.htm

If you are considering, or are in the process of, buying or selling a business and require assistance with pre-contract disclosure, due diligence investigations, negotiations, preparation or review of contracts please contact Valentina Misevska on 49076316.

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