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Business Laws - Sample Assignment (PDF)

   

Added on  2021-06-14

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Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
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1BUSINESS LAWSCase introductionIn general a person has no duty to take precautions towards ensuring that there is no financialloss caused to another person unless such loss has been caused by a physical injury or to adamage of the persons property as ruled through the case of Spartan Steel & Alloys Ltd v Martin[1972] 3 WLR 502. However there has been an exception to this general rule which have beendiscussed through the provisions of cases like Hedley Byrne & Co Ltd v Heller & Partners Ltdand Mutual Life & Citizens' Assurance Co Ltd v Evat. In these cases it had been ruled by thecourt that where there is a negligent misstatement made by a professional who may be able toforesee that the other party may rely on such statement to indulge in an act or omission andsuffer a loss there will be a liability for negligence. This paper will deal with the case ofShaddock (L) & Associates Pty Ltd v Parramatta City Council where a similar issue had beenbrought before the court. In this case the court held that there was negligence in the part of thedefendant by providing a negligent misstatement in writing. In this case the defendant wasParramatta City Council and the plaintiffs (Appellant) were Shaddock (L) & Associates Pty Ltd. The facts of the caseThe appellant company had purchased a property in Jul7 1973 in Parramatta in order toredevelop such property. The respondent council in February 1974 confirmed a resolution whichrespect to 1971 august as per which it determined that two streets in relation to the property ofthe appellant were to be broadened which would make decrease the property area by as much as40%. Thus the property becomes unsuitable for redevelopment. If the resolution of the councilhad been known to the plaintiff they would not have purchased the property in context. One ofthe representatives of the appellants had stressed to Mr. Carrol the solicitor of the company in
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2BUSINESS LAWS1973 that it is very important to acquire the whole property for the purpose of the development.The solicitor based on such instructions took the required steps to find out whether there was anyintention on the part of the local council, to re-align or widen the roads near the property. He hadcalled the town planning department of the council to inquire about any intention about thecouncil to enter into such actions. An unidentified employee stated that the council had no plansto indulge the widening of the roads surrounding the property. Depending upon the advicevarious certificates had been applied for by the solicitor with respect to the provisions of LocalGovernment Act 1919 (NSW). In relation to the application form which had been provided bythe solicitor contained the question that "Is the property affected or proposed to be affected by ....Road widening or re-aligning proposals ... "?. Under the provisions of section 342AS thesolicitor had been provided with the certificates in context. In general practice the council incase of proposals like this keep a note of the fact on such certificates. The knowledge about thispractice was available to the solicitor and the certificate which had been received by him had nomention about any of such proposal. The applicant and the solicitor thereby believed that no suchproposal was present in the mind of the council and thus relied on the information to go forwardwith the purchase. The issues raised by both plaintiff and defendant.There were two primary issues which had been brought before the court in this case. These wereas follows 1.Who had a duty of care in case of a claim for negligent misstatement? Whether it is thedefendants as raised by the plaintiff or not the defendants as argued by the defendants
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