Ellen is a graduate of The College of Alternative Medicine and is looking to start her own business. She decides to open a meditation studio and looks around the inner city suburb of Paddington for...

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Student Name
Student ID number
Unit name / number
Lecturer Name
Assignment title CLW 1000 Commercial Law
Word Count 2000 words
Dated 3
d
September 2013
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Table of Contents

Introduction......................................................................................................... 3
Issues in the case ................................................................................................. 3
Legal principles .................................................................................................. 4
Law of contract ............................................................................................... 4
Misrepresentation ........................................................................................... 4
Negligence ...................................................................................................... 6
Negligent misrepresentation ........................................................................... 7
Elements of negligence misrepresentation ..................................................... 8
Duty of care ................................................................................................ 8
Defendant exercised duty of care ............................................................... 9
Remoteness of damage ............................................................................... 9
Unconscionable Conduct ................................................................................ 9
Misleading conducted ..................................................................................... 9
Analysis on the basis of applicable legal principles ......................................... 10
Conclusion ........................................................................................................ 11
Bibliography ..................................................................................................... 13
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Introduction
Establishing a new business is not an easy task; it requires proper planning and
fulfilment of number of requirement, legal requirement is also among one of
those several requirements which the business owner should fulfil otherwise it
might cause hindrance in its success and growth. The commercial law of
Australia provides a legal framework to establish clarity of goals and procedure
to operate ethically in the market. This is a case study based analysis in which
misrepresentation of information has been done by one party. This is a case
analysis report which will include information about the case, major principles
followed, and references to different cases will be used to help the appellant in
eaching to a legal available solution to the problem.
Issues in the case
According to the given case Ellen decided to start a new business by opening a
meditation studio nea
y; for this purpose she searched a location and found
te
ace house near to Oxford St. to be suitable for the business; she went to the
local council to collect information regarding the suitability of her business. As
per the scenario discussed as Ellen asked her question regarding any building
work in the area; the employee was called before responding to hr query. Later
on the employee was in hu
y and made a statement that relax everything will
e fine. Next day Ellen signs the lease and later on a building construction
worked started nea
y which caused huge loss to business as well as Ellen.
Few analysis statements according to the given scenario are as follow;
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 When the local council responded to Ellen, he was in hu
y and did not
said explicitly in context to construction or the premises.
 Ellen did not cross check the information by asking clearly from the
employee or any other place about the premises.
Legal principles
Any legal scenario must be analyzed in context with different legal laws
presented and past cases discussed in the court, different legal principles that
will be applicable in this case are discussed below.
Law of contract
Australian legal system also follows the English law regulations in terms of
contact of law, which states that formation of contract requires agreement
etween two or more parties; on the basis of some consideration to be paid in
exchange of the deal made
1
. Contract needs to be made explicitly with the
consent of both the parties involved in the process.
Misrepresentation
Misrepresentation can be defined as a wrong statement made by one party to
the other; it can be wither intentional or intentional but it influence the decision
about the contract as the misrepresentation of the statement made the party
contract signed
2
. However, proofing a case of misrepresentation is difficult as

1
Jennings, M. M., 2005. Business: Its Legal, Ethical, and Global Environment. Seventh ed. London: Cengage
Learning.

2
Dobson, A. P. & Stokes, R., 2006. Commercial Law. Canada: Sweet & Maxwell.
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due to complexity involved as it can be merely regarded as representation by
the parties involved in the contract. For instance, case of Smith v Land &
House...