AUSTRALIAN CONSUMER LAW AND FAIR TRADING ACT 2012 (NO. 21 OF 2012) - SECT 27 Liability of supplier and person conducting antecedent negotiations

AUSTRALIAN CONSUMER LAW AND FAIR TRADING ACT 2012 (NO. 21 OF 2012) - SECT 27

    (1)     In a contract of supply of goods or services, a representation made to the purchaser in the course of any antecedent negotiations by a dealer or by a person acting on behalf of the supplier (otherwise than as an agent of the supplier acting with the authority of the supplier) confers on the purchaser—

        (a)     as against the supplier, the same right to rescind the contract and the same right of action in damages as the purchaser would have had if the representation had been made by an agent of the supplier acting with the authority of the supplier; and

        (b)     as against the person by whom the representation was made, the same right of action in damages as the purchaser would have had if the purchaser had purchased the goods or services from that person; and

        (c)     if the antecedent negotiations were conducted on behalf of another person, as against that other person the same right of action in damages as the purchaser would have had if the purchaser had purchased the goods or services from that other person.

    (2)     In a contract of supply of goods or services, a warranty given to the purchaser in the course of any antecedent negotiations by a dealer or by a person acting on behalf of the supplier (otherwise than as an agent of the supplier acting with the authority of the supplier) confers on the purchaser—

        (a)     as against the person by whom the warranty was given, the same right of action in damages as the purchaser would have had if—

              (i)     the warranty had been given in consideration of the purchaser purchasing the goods or services from that person; and

              (ii)     the purchaser had purchased the goods or services from that person; and

        (b)     if the antecedent negotiations were conducted on behalf of a dealer, as against the dealer the same right of action in damages as the purchaser would have had if—

              (i)     the warranty had been given in consideration of the purchaser purchasing the goods or services from the dealer; and

              (ii)     the purchaser had purchased the goods or services from the dealer.

    (3)     For the purposes of subsections (1) and (2) it is immaterial whether or not the goods or services supplied to the purchaser were purchased by the supplier from a dealer by whom or on whose behalf any antecedent negotiations were conducted.

    (4)     Nothing in this section prevents a statement being both a representation and a warranty.

    (5)     Nothing in this section confers on a purchaser an entitlement to an amount of damages arising from a representation or a warranty exceeding the amount of the loss suffered by the purchaser.