In Namrood v Ebedeh-Ahvazi  NSWCA 310, a property for sale was falsely advertised as a mortgagee sale. Mr Namrood attended the auction for this property and was the successful bidder at $1.46 million. After Mr Namrood had entered into a contract to purchase the property, he claimed that the advertisement of the auction by mortgagee sale was misleading and was calculated to and did induce him to bid at the auction.
The Court held that the advertisement of the property was misleading and deceptive. However there was no evidence that Mr Namrood made a bid because he believed it was a mortgagee sale. Mr Namrood stated that he bid at the auction because the bidding of other participants encouraged him to do so. Also, Mr Namrood had learned that the property owner was the manager of a housing company, which dispelled Mr Namrood’s belief that it was a mortgagee sale. Hence the Court held that despite the misleading and deceptive conduct, it did not cause him to enter into the contract. Read full case.