GATES V THE CITY MUTUAL LIFE ASSURANCE SOCIETY [1986] 160 CLR 1
High Court of Australia – 20 February
FACTS
Gates agreed to upgrade his insurance policy to include total disability cover.
An agent of City Mutual told Gates that the policy would insure him if he was unable to carry on his occupation as a self employed builder. That statement was false as the policy only insured him if he was unable to be employed by any occupation.
Gates sued City Mutual for breach of contract and misleading and misleading and deceptive conduct under section 52 of the Trade Practices Act.
ISSUE
Had the representation made by the agent of the City Mutual formal a collateral or separate contract?
Should damages for the false statement be reliance or expectation damages?
FINDINGS
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