Farrow Mortgage Services Pty Limited (in Liquidation) v Bosnjak

The New South Wales Court of Appeal considered a dispute between Farrow Mortgage Services Pty Limited (in Liquidation) and Mr. Bosnjak. The core of the disagreement concerned the enforceability of certain loan agreements and the extent of Farrow Mortgage Services' liability.

The Court was required to determine whether the loan agreements were valid and enforceable, particularly in light of allegations of misrepresentation and breaches of fiduciary duty by Farrow Mortgage Services. A key issue was whether Mr. Bosnjak was entitled to set off amounts against the principal sum claimed by the liquidator, and if so, on what basis.

The Court analysed the principles of contract law and the law of agency in the context of mortgage lending. It examined the evidence presented regarding the representations made by Farrow Mortgage Services and the nature of the relationship between the parties. The Court ultimately found that certain representations made by Farrow Mortgage Services were misleading and that Mr. Bosnjak was entitled to a set-off.

The Court of Appeal ordered that the appeal be allowed in part, varying the primary judge's decision. The liquidator was ordered to pay Mr. Bosnjak's costs of the appeal.