Galaxidis v CBFC Leasing

The dispute in *Galaxidis v CBFC Leasing* concerned a fraudulent purchase of a car, where finance was obtained from two separate financiers through two different car dealers. The plaintiff, Galaxidis, sought to recover money paid for the car. The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the court were whether a valid contract for the sale of the car existed between the fraudulent purchaser and the vendor, and whether a contract was formed between the financier and the vendor, evidenced by an invoice and payment. The court also had to determine the effectiveness of an exclusion clause in the contract, which purported to exclude "all warranties and conditions," in relation to a warranty as to title. Finally, the court considered whether a certificate of conviction of the fraudulent purchaser should be admitted as further evidence on appeal.

The Court of Appeal held that the contract for the sale of the car was not void ab initio. It found that the financier and the vendor had entered into a valid contract, evidenced by the invoice and payment. The court further determined that the exclusion clause, while broadly worded, did not effectively exclude the implied warranty as to title, as this was a fundamental aspect of the contract. The court also ruled against admitting the certificate of conviction on appeal.

The appeal was dismissed with costs.