Loustos v Krishna

The case of *Loustos v Krishna* concerned a dispute between the parties regarding a contract for the sale of land. The specific nature of the dispute involved allegations of misleading or deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). The matter was heard by Gaudron and Callinan JJ of the High Court of Australia.

The central legal issue before the High Court was whether the vendor's conduct in relation to the sale of the property constituted misleading or deceptive conduct within the meaning of the *Trade Practices Act*. This required the court to consider the nature of the representations made by the vendor, the context in which they were made, and whether those representations were likely to mislead or deceive a reasonable purchaser in the circumstances.

The High Court ultimately found that the vendor's conduct did not amount to misleading or deceptive conduct under the *Trade Practices Act*. Their Honours reasoned that the representations made by the vendor, when viewed in their entirety and in the context of the transaction, were not of a character likely to mislead or deceive a reasonable purchaser. The court applied the established principles for determining misleading or deceptive conduct, focusing on the objective likelihood of deception rather than the subjective state of mind of the particular purchaser. The appeal was dismissed.