Where a party continues an existing trading relationship in the same manner as before without disclosing material changes to the corporate structure underlying the relationship, this constitutes positive misleading and deceptive conduct — not mere silence or inadvertent refraining from disclosure. The 'inadvertence' defence under s 4(4)(b)(i) of the Fair Trading Act 1987 (NSW) does not arise where the conduct is characterised as positive. An appropriation of payments induced by misleading conduct is not a genuine election and cannot bind the misled party.
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