Question
Dodgy Pty Ltd is a large corporation supplying and selling vacuum cleaners to clients in the western suburbs of Melbourne. Alexandra, acting on behalf of
Dodgy Pty Ltd is a large corporation supplying and selling vacuum cleaners to clients in the western suburbs of Melbourne. Alexandra, acting on behalf of the corporation secures the sale of a vacuum cleaner to Bobby, who recently has migrated to Australia.In the course of securing the sale, Alexandra states that Bobby's old second hand vacuum cleaner is 'a gong' and is going to blow up any time. She convinces Bobby that the new vacuum cleaner will 'make his life much easier' despite his statement that he has no money to buy a new vacuum cleaner. Alexandra advises Bobby that he does not have to pay any money, as he is buying the vacuum cleaner "on 24 months interest free terms". She fails to explain the terms of the contract to him despite being told that he could not read or write. With some reservation, Bobby enters into a contract with Alexandra to buy the vacuum cleaner. Bobby has made no payments pursuant to the agreement and wishes to void the contract.
On what grounds, if any can Bobby void the contract? In your answer, focus only on the provisions of section 21 of the Australian Consumer Law and whether any statutory guarantees under the ACL apply.
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