Dempster v Coates

In *Dempster v Coates*, the New South Wales Court of Appeal considered a dispute between the appellant, Dempster, and the respondent, Coates. The case concerned the enforceability of a written agreement for the sale of a business, which the appellant sought to set aside on the grounds of misrepresentation and breach of warranty.

The primary legal issues before the Court of Appeal were whether the representations made by the respondent regarding the business's profitability constituted actionable misrepresentations, and whether these representations amounted to warranties that were subsequently breached. The Court also had to determine the appropriate remedy for the appellant if misrepresentation or breach of warranty was established.

The Court of Appeal found that the representations made by the respondent were not mere statements of opinion but were assertions of fact that induced the appellant to enter into the agreement. It was held that these representations were false and that the appellant had relied upon them to his detriment. The Court applied the principles of contract law relating to misrepresentation and warranty, distinguishing between fraudulent and innocent misrepresentation and the remedies available for each. The Court concluded that the appellant was entitled to relief.

The Court of Appeal ordered that the contract for the sale of the business be rescinded and that the appellant be compensated for his losses.