RELEVANT FACTS • Plaintiffs are Mr and Mrs Luxford (the vendors). • First defendant is Mrs Sidhu (the purchaser). • Second defendant is PA & NA Johnson Pty Ltd. • Third defendant is Johnson Prestige Realty Pty Ltd. • Fourth defendant is David Michael Johnson. • Cross defendants are Peter Michael McBride and Anna Maria Bernadette Marano. • Contracts were exchanged on 2 May 2005 for the purchase of property for $2,130,000 between the plaintiffs and the first defendant. • Contract of sale to be completed by 25 July 2005, not completed. • Notice to complete served on 27 July 2005 requiring completion by 10 August 2005, not completed. • Plaintiffs sue for forfeiture of the deposit and for damages for a deficiency on re sale. • First defendant terminated the contract on the basis of: o Misrepresentation by the estate agent representing the vendors. o Discovery of potential medium-density development of neighbouring property. • First defendant also seeking claim against former solicitor alleging a failure to advise on zoning matters • First defendant
ISSUES • Whether the vendor actually authorised the selling agent to make false representation. • Whether misrepresentation caused the first defendant to enter into the contract. • Whether a handshake between the first defendant’s husband and the agent expressed an intention to purchase the property by the first defendant. • Whether the first defendant would have exchanged contracts to purchase the property regardless of whether there was an interested buyer or not. • Whether the property was worth the amount that was agreed to be paid. • Conflicting statements contained in the affidavit material made it difficult to ascertain whether the alleged misrepresentation was caused by the first