A representation described as 'guaranteed' in a sales context is not exclusively promissory but also contains a representational component attracting s 51A of the Trade Practices Act 1974 (Cth). It may be reasonable to make a highly qualified estimate or prediction, but quite unreasonable for a party to proffer an unqualified and firm prediction such as is conveyed by the word 'guarantee'. Where a selling agent's employee exceeds the agreed scope of marketing authority (here, by offering a guaranteed return to domestic purchasers when authority was confined to offshore purchasers), the principal is entitled to an indemnity from the agent notwithstanding close collaboration in the marketing campaign.
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