Salmaan v ANZ Banking Group Ltd

In *Salmaan v ANZ Banking Group Ltd*, the New South Wales Court of Appeal considered a dispute between the Salmaans and ANZ Banking Group Ltd concerning the validity of a mortgage and the enforceability of certain loan agreements. The Salmaans sought to set aside a mortgage granted to ANZ over their property, alleging it was procured by misleading and deceptive conduct.

The central legal issues before the Court of Appeal were whether ANZ had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in contravention of the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)), and whether the mortgage and associated loan agreements were therefore void or otherwise unenforceable. The court also had to determine the extent of ANZ's knowledge regarding the Salmaans' financial circumstances and the nature of the advice provided to them.

The Court of Appeal, applying established principles of contract law and consumer protection legislation, found that ANZ had not engaged in misleading or deceptive conduct. The court reasoned that the information provided by ANZ to the Salmaans was accurate and that the Salmaans had been afforded sufficient opportunity to seek independent legal and financial advice. The court emphasised that a bank is not under a general duty to advise a customer on the wisdom of a particular transaction, provided it does not mislead them about the nature of the transaction or its terms. The court concluded that the mortgage and loan agreements were valid and enforceable.