After developing a highly successful mobile phone app, Chris decided to invest in a mobile phone business as his next venture into the telecommunication industry. One day Chris came across an advertisement in the newspaper which had a mobile phone store for sale in a shopping centre not far from his house. Keen to find out more about the opportunity, Chris quickly called and set up a meeting with the sales agent Peter.
During the meeting, Peter told Chris that the mobile phone store had been in business for nearly 20 years at the same location and had built up a huge customer base as well as a tremendous amount of goodwill. The business was generating an annual income of $2 million and because of the good relationship which the vendor had with the shopping centre, Peter told Chris that the rent would not be increased for the next five years, there would not be another mobile phone dealership in the shopping centre and the new iPhone 7 was going to be the hottest item this year when released!
Excited with what he heard, Chris entered into a contract without any hesitation and became the new owner of the mobile phone store. Unfortunately six month after Chris took over the business, the shopping centre decided to increase his rent; the store was not making anywhere near $2 million and the largest mobile phone provider in the country was going to open its flagship store in the shopping centre. Chris then discovered that none of the things Peter told him was in fact true after losing most of his investment and savings.
Required:
(a) Advise Chris as to his legal rights under common law and equity principles operating against Peter. (10 marks)
(b) Similarly, advise Chris of his legal rights under the Competition and Consumer Act 2010(Cth) against Peter. (10 marks)
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