BOQ Equipment Finance Ltd v Scott

BOQ Equipment Finance Ltd sought payment of money lent to the defendants under a bill of sale agreement. The agreement involved the first and second defendants assigning two printers used in their business, which was conducted through the third defendant, as security to the plaintiff. The defendants argued that they were induced to enter the agreement by misrepresentations made by the operator of a franchise of the plaintiff's parent company, the Bank of Queensland. The alleged misrepresentations included that the defendants would not have to make any payment under the agreement unless and until there was a further agreement to extend credit to them by the bank and that the agreement was an essential step towards obtaining a debtor finance facility. They claimed that they should not have to repay the money they borrowed from the plaintiff.

The court was required to decide whether the defendants were induced to enter the agreement by the alleged misrepresentations and whether the misrepresentations were fraudulent or innocent. The court also had to determine whether the defendants could rely on section 87 of the Trade Practices Act 1974 to avoid repaying the money they borrowed from the plaintiff. The court considered whether the misrepresentations amounted to misleading or deceptive conduct or false representations under the Act.

The court held that the defendants' counterclaim was dismissed. The court found that the defendants were not induced to enter the agreement by the alleged misrepresentations, and that the misrepresentations were not fraudulent or innocent. The court also held that the defendants could not rely on section 87 of the Trade Practices Act 1974 to avoid repaying the money they borrowed from the plaintiff. The court found that the misrepresentations did not amount to misleading or deceptive conduct or false representations under the Act.

The court ordered the first and second defendants to pay to the plaintiff an amount of $1,894,291.19.