Commercial law - Sample Assignment
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Added on 2021-05-31
Commercial law - Sample Assignment
Added on 2021-05-31
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Running head: COMMERCIAL LAWCommercial LawName of the StudentName of the UniversityAuthor note
1COMMERCIAL LAWIssueThe issue in this case is related to the fact that whether Peter can claim compensationfor economic loss in negligence from Wollongong Council.RuleThis case study discusses the theory of negligence as it has been observed in thematter of Donoghue v Stevenson[1932]. This case is applicable in the given case study. Itwas established in this scenario that if because of the behavior of an individual has an effecton the wellbeing of another individual, the aggrieved party will be treated as the neighbor. Onthe other side, the person whose actions affect is said to owe a duty of care to the neighbor.Hence, the concept of tort of negligence describes a scenario when a person fails to carry outthe duty of care for the aggrieved individual as per the principle of neighbor in this situation.There can be a breach of duty in such a situation when the defendant will have the ability tooverlook the injury that had arose because of the actions of the defendant. Hence, there are afew existing essentials of negligence that can be evidenced when the situation is related to theclaims of negligence. Duty of care is the first and foremost essential that should be present. In this scenario,the defendant must owe a duty of care to the plaintiff. Thus, he should ensure that the care isproperly provided and executed consistently. It can however be implied that the defendantshould have undertaken the probable measures to prevent the damage that has been caused tothe plaintiff due to his actions. Breach of duty to take care is the second essential that is related to the concept ofnegligence. As per this essential, if any kind of breach is done to the first essential by thedefendant and have caused damage to the plaintiff, then he will be held negligent.
2COMMERCIAL LAWCausation is the third essential linked to the concept of negligence. The termcausation arises when the plaintiff has been injured and hurt due to the activities of thedefendant. In the case of Barclays Oyster Pty Limited and Another v Ryan [2002] it has beenobserved and held that the Court had provided the test of but for that it has to be determinedthat if the reason of the damage was a direct result of the defendant’s activities. Hence, incase of the acts of the negligence, the plaintiff had suffered the loss and damage. If it did notarise at the first instance then it would not have sustained the injury or have gone through anysort of losses. Remoteness is the last essential associated with negligence. In this element, it arisesthat when there was an indirect consequence of the actions of the defendant, he will be heldliable for the injury. Hence, it must not be that much distant and this kind of damage wasestablished in the case of Spartan Steel & Alloys v Martin [1972] EWCA. However, thereason for economic loss was caused due to negligence and it can be caused due to negligentwords. In the case of Byrne & Co Ltd v Heller & Partners Ltd[1964], the concept ofnegligent words had occurred by creating economic loss. In such a case, the rule wasoverruled and the Court had permitted for the growth of pure loss that had an outcome in theuse of negligent words. Therefore, in a few specific cases, the Court had decided that therewas a scope of restoration from the economic loss that was permitted only if the plaintiff hadprovided evidence stating that a duty of care had existed between the plaintiff and thedefendant.For determining that if the theory of duty of care exists then few of the factors mustbe followed thereafter. Vulnerability must be taken care of if the plaintiff has failed topursue any kind of proper steps for forestalling the negligence that the defendant hadcommitted and he will owe a duty of care. Thus, the Court can consider the practicalpossibilities that are available to the plaintiff for preventing negligence. Control is applicable
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