Yeo and Rambaldi v Francis

In the matter of *Yeo and Rambaldi v Francis*, heard in the Magistrates Court of Western Australia, the applicants, Yeo and Rambaldi, sought to recover damages from the respondent, Francis, for alleged breaches of contract and misleading and deceptive conduct. The dispute arose from a series of transactions concerning the sale of a business, where the applicants claimed they were induced to purchase the business based on representations made by the respondent that were later found to be untrue.

The court was required to determine whether the respondent had breached the terms of the sale agreement, and if so, what damages were recoverable. Furthermore, the court had to consider whether the respondent's conduct constituted misleading or deceptive conduct in contravention of consumer protection legislation, and the extent of any liability arising from such conduct. The applicants also sought to establish that certain clauses within the sale agreement were unconscionable.

Judge McNab found that while there were some misrepresentations made by the respondent, these did not amount to a breach of contract in the manner alleged by the applicants. However, the court determined that the respondent's conduct did contravene provisions of the *Australian Consumer Law* by engaging in misleading and deceptive conduct. The court reasoned that the applicants had relied on these representations to their detriment when purchasing the business. The court also considered the unconscionability claims, finding that while the circumstances were not ideal, they did not reach the threshold for unconscionability under the relevant legislation.

Ultimately, the court ordered that the respondent pay damages to the applicants in an amount to be assessed, reflecting the losses suffered as a direct consequence of the misleading and deceptive conduct. The court dismissed the claims for breach of contract and unconscionability.