16641 Lecture Notes - Lecture 2: Anomic Aphasia, Letting Agent, Demagogue
Document Summary
The case involved a lender who provided funds for a borrower"s insurance policy. The lender wrongly believed the policy could be cancelled, and alleged it had been misled or deceived by non-disclosure on the part of the borrower. On the one hand, the court approved the demagogue decision, accepting that silence or non-disclosure of information may constitute misleading or deceptive conduct in a variety of circumstances. However, the judges were also careful to point out that parties of equal bargaining power are not required to volunteer information" to protect another party from the consequences of that party"s careless disregard" for its own interests. In this particular case the lender lost, primarily because the borrower had provided the relevant policy document and the lender had simply failed to read it. In the course of negotiations with a prospective tenant, a letting agent predicted that the centre would be almost fully let by the time it opened.
