BURG DESIGN PTY LTD V WOLKI [1999] FCA 388
Federal Court of Australia – 9 April 1999
FACTS
Burg Design negotiated with Wolki to purchase a fast food chicken business in Albury. During the course of the negotiations Wolki made misrepresentations about the gross profit margin and the cash takings of the business. After the negotiations Burg
Design purchased the business and signed a contract which included the following acknowledgement clause:
“The Purchasers acknowledge that, in entering into this agreement, they have not relied upon any statement, representation, warranty or condition made or given by the Vendors or any one on their behalf in respect of the subject matter of this agreement, other than those that are expressly herein contained.”
Wolki defended a claim for misleading and deceptive conduct by Burg Design and claimed that the acknowledgement clause in the contract proved that Burg Design did not rely on the misrepresentations before purchasing the business.
ISSUES
Did the signing of the contract by Burg Design prove that it did not rely on the misrepresentations before purchasing the business?
FINDING
…
