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Commercial Law - Sample Assignment (pdf)

   

Added on  2021-06-16

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Commercial Law
Commercial Law - Sample Assignment (pdf)_1
1.ISSUEThe key issue is whether a duty of care is owed by Wollongong Council?RULEWhen a person owes an obligation for taking care as provided by the law, it is referred to his/her duty of care. In case the party failed to comply to take appropriate care, he/she can be held liable for breaching such duty. The claimant is required to provide that the losses suffered by him are caused due to the failure of ensuring security standards by the defendant. The burden lies on the claimant for proving the duty of the defendant. Originally,it was decided by Lord Atkin in the historical judgement given in the case of Donoghue v Stevenson [1932] AC 562 (Greiner, 2014). The decision of whether a duty exists is based on the ‘neighbour test’ which provides that there are two requirements of duty which include the relationship of proximity and reasonable foresight of the harm.APPLICATIONPeople who purchase land or property in the Wollongong local area rely on the certificate ofWollongong Council to know about future projects in the area that might affect theirinvestments. There is a proximity relationship between Peter and Wollongong Councilbecause Peter’s purchasing decisions are likely to affect the future projects of the council.Furthermore, there is reasonable foresight of the harm because Wollongong Council knowsthat the road widening project will reduce the cost of land of people.CONCLUSIONThus, duty or obligation for ensuring proper care is owed by Wollongong Council to Peter.
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2.ISSUEDid Wollongong Council breach the duty of care?RULEBreach of duty is referred to a negligence liability which occurs if the defendant fails to takeaction or ensure the proper security measures are taken by him which are provided by thelaw. After proving that a duty of care exists, the claimant has to demonstrate the breach ofsuch duty as well. The court uses an objective test for determining an obligation to take careas provided in Condon v Basi [1985] 1 WLR 866 (Greenfield, 2016). The test evaluateswhether the defender has breached the obligation to take care by not taking appropriatesecurity measures which any reasonable person would have.APPLICATIONWollongong Council knows that people read its certificate before purchasing land orproperty in the area; still, it did not include the information about the road widening projectwhich any reasonable person would have included.CONCLUSIONThus, Wollongong Council breached the duty of care.
Commercial Law - Sample Assignment (pdf)_3

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