BUS107 Commercial Law T1 2018 Assignment A 1, XXXXXXXXXX%) word assignment on a problem question to...

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BUS107 Commercial Law T1 2018 Assignment A 1, XXXXXXXXXX%) word assignment on a problem question to be submitted electronically via Turnitin. Assignment Question Peter is a real estate developer. He develops residential apartment complexes in the Wollongong local area. He purchases a large block of land for $2 million and plans to build a large apartment complex on the block at a considerable profit. But Wollongong Council denies his development application on the basis of a road widening proposal that will substantially reduce the size of the block. This road widening proposal reduces the value of the block of Peter’s land to $1 million. Peter reads the council certificate he obtained from Wollongong Council before he purchased the block of land. If the block of land had been subject to a road widening proposal then it should have been disclosed by Wollongong Council in the certificate. There is no such disclosure in the certificate. As Peter didn’t bother to read the certificate before he purchased the land, he is relieved to find the council has made this mistake. He secretly knows that if Wollongong Council had been careful and included the road widening disclosure in the certificate, he would not have seen it and gone ahead with the land purchase anyway. Peter now wants to sue Wollongong Council in negligence for economic loss. Wollongong Council claims that negligence only applies to physical actions, not written words, and is only applicable to physical damage to people or their property, not economic loss. Advise Peter. 45 Marks

Vineet Kumar · Accepted Answer

6
Analysis of a Case Scenario
Issues in Case 
In the given case, there are two main issues that are:
· Whether or not the negligence of written words will apply;
· Whether or not negligence can be applicable to economic loss;
Rules
Negligence is a legal action that can be used by a plaintiff person against a defendant who owed the duty of care to plaintiff. The duty of care will be a part of the responsibility. The term of liability takes place when duty for taking care takes place and breach of the duty causes the loss or damage to plaintiff’s property (Handford 2010). This loss can be either physical or economic. To define the negligence of the tort, there are three terms in Australian law that must be established by the injured person against the defending party for a successful lawsuit (Latimer, 2011).
Duty of care: It defined the reasonable care that is owned by the defender when performing any action related to plaintiff. 
Breach of duty: It takes place when the defender does not perform the activities related to the plaintiff with the standard of care (Handford 2010).  It means the breach of duty comes when a defendant fails to substantiate the obligatory standard of care.
Damage: It is a result of the action which comes due to a breach of the duty. 
As per the tort law, negligence is actually an action with a carelessness that satisfies the above defined three elements. 
The Civil Liability Act 2002 of Australia also discusses the three-step test based on above-defined elements to describe the act of negligence (Stewart and Stuhmcke 2017).  
Section 5B (1) of the Civil Liability Act 2002 of Australia defines when a person can be liable for the negligence and section 5B(2) defines the standard of care for personal injuries (Latimer 2011). Section 16 of the Civil Liability Act 2002 states that a plaintiff may also recover damage for his/her economic loss if can establish three-test (Bailey 2016).

BUS107 Commercial Law T1 2018 Assignment A 1, XXXXXXXXXX%) word assignment on a problem question to be submitted electronically via Turnitin. Assignment Question Peter is a real estate developer. He...

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