Harvey,a real estate agent,convinced Theresa,an architect,to buy a block of land and build three luxury units by falsely claiming she could sell them for a net profit amount of $300 000.Theresa carried out her own feasibility study but she relied mainly on Harvey's false financial predictions.When Theresa sold the units she suffered a net loss of $200 000.Theresa has sued Harvey for misleading or deceptive conduct under the Australian Consumer Law and demanded $300 000 in damages.What is likely to happen?

Question

Quizplus · Accepted Answer

Harvey will likely lose because he engaged in misleading or deceptive conduct by providing false financial predictions that Theresa relied upon, despite her own feasibility study. Under Australian Consumer Law, individuals can be held accountable for such conduct, and Theresa's reliance on Harvey's advice directly led to her financial loss. Therefore, she may be entitled to damages, in this case, the $300,000 she was misled to expect as profit.

Harvey,a Real Estate Agent,convinced Theresa,an Architect,to Buy a Block of Land