B Law

MCD2070 Business Law
Question 1

The main issue in this brass/problem is whether the representor, the Jackaroo Resorts Ltd (‘the company’) is liable for negligent misstatement to the representee, the shire of Gipps bring down (‘the Shire’). In order to prove negligent misstatement, 3 step must be satisfied:

1. Does the representor owe a art of care ( physician) to the representee?
2. Has the representor breached the DOC?
3. Is the damage suffered by the representee directly caused by the representor’s breach or is it too remote?

If the representor is liable for negligent misstatement, it is then necessary to consider defences of contributory negligence, willing assumption of risk and the existence of disclaimer.

Step 1: debt instrument of Care
Issue: Does the Shire owe the company a DOC?

Rules:
A person who gives advice could owe a DOC to the recipient role to take reasonable care in providing that advice if a “ fussy birth” existed between them. The existence of a special relationship is determined by applying the 4 criteria established in pomelo tree’s case.[1]

1. Was the information given about a proficient matter as set out in MLC v Evatt[2]?

2. Did the representor realize or ought to have realized that they were being certain as in Hedley Byrne v Heller[3]?





3. Did the representor reasonably foreseen that the representee would have acted/relied on the information?

4. Was it reasonable for the representee to act on the information as discussed in Esanda Finance Corporation Ltd v Peat Marwick Hungerfords[4]?

Application:

By applying the 4 tests established in Shaddock’s case, we feel that:

1. Any other plans for development in the vicinity of the land will reasonably alter the viability of the resort and thus the take to be of it. And the money used on buying the land and expression the resort is a huge sum that needs to be carefully considered before use.

2. The Shire, being a sole official...If you postulate to get a full essay, order it on our website: Orderessay



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