Australian Finance Direct Pty Ltd v Hakky Hamdy [2007] NSWLC 15

Local Court of New South Wales

CITATION: Australian Finance Direct Pty Ltd v Hakky Hamdy [2007] NSWLC 15 JURISDICTION: Civil PARTIES: Australian Finance Direct Pty Ltd Hakky Hamdy FILE NUMBER: 133261/05 PLACE OF HEARING: Downing Centre Local Court DATE OF DECISION: 06/15/2007 MAGISTRATE: Magistrate H Dillon CATCHWORDS: Contracts – consumer contracts – whether defendant misled by plaintiff's agent – whether terms of contract unjust – whether contract ought be enforced LEGISLATION CITED: Contracts Review Act 1980 ss.7(1)(a), 9 CASES CITED: L'Estrange v Graucob [1934] 1 KB 394 Toll v Alphapharm (2004) 219 CLR Ms S.K. Hill (Counsel for Plaintiff) NV Legal Solicitors (for Plaintiff) REPRESENTATION:

Self (for Defendant) ORDERS: 1. Verdict for the defendant. ; 2. Costs to follow the event.

Judgment

1. Australian Finance Direct Pty Ltd ("AFD") is a finance company with many interests. Among them, it has a relationship with an entity known as Maths and Learning Excellence Pty Ltd ("MALE"). MALE provides educational software to purchasers and ADF provides the finance for the purchase of the package.

2. In February 2005, Mr Hakky Hamdy, the defendant, signed a written agreement with AFD for a loan of $5695 to enable him to buy the MALE software package for his children. It is conceded by ADF that the loan was negotiated on ADF's behalf by a representative of MALE and that he was an agent of ADF for that purpose.

3. Mr Hamdy admits having entered the contract but asserts that he was misled by the agent as to essential terms including the length of the contract and the relevant interest rate. He also asserts that he relied upon an offer that he would receive a laptop computer. He says that the computer supplied was not fit for the purpose. He also raises a defence of unconscionability. The background 4. The salient facts in this matter are largely undisputed. In mid-February 2005 Mr Hamdy received an unannounced telephone call from MALE offering a no-obligation demonstration of its mathematics programme for school children. He accepted the offer on the basis that the demonstrator spoke Arabic (Mr Hamdy's native language).