Analysis of Australian Tort and Contract Law Case Study

This case study analyzes a legal scenario involving Australian Tort and Contract Law. The case revolves around Ellen, who sought to establish a meditation studio but suffered financial losses due to misinformation provided by a council worker regarding zoning regulations. This led to a breach of contract with her landlord, as she was unable to pay rent due to the business failure. The analysis follows the IRAC method, examining issues of negligence by the council worker, contract law violations, and the tort of negligence. The report concludes that Ellen was not responsible for the contract breach and could pursue legal action against the council worker for negligence, which caused financial harm and reputational damage. The worker is deemed liable for compensation under Australian legislation.

Running head: LAW CASE STUDY
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Author Note

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Executive summary
The Tort and Contract Laws as enforced under the Australian Legislation are a set of rules that
are enforced in order to eradicate the disputes among civilians and prevent the damage due
negligence. A case study was selected to help understand the main principles and applications of
the Australian Tort and Contract Laws and how they are used to classify the actions of the
individuals depending on their actions. This case has been thoroughly investigated and the
breaches of laws have been explained with reference following the principles of IRAC (Issue,
Rules and Relevant Law, Application and Conclusion). The purpose of this report is to closely
identify the case and find relevant crisis related to it and the conclusion.

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Table of content
Introduction......................................................................................................................................3
Tort law and Contract law...............................................................................................................3
Issue 1..............................................................................................................................................4
Issue 2 Contract Law.......................................................................................................................4
Issue 3 Tort of negligence................................................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................7

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Introduction
The Australian Tort and Contract Law have been established in order to minimize the
possibilities of disputes and to eradicate the issues in proper legislation and help rendering justice
to the victims. In order to have a clear idea about the fundamentals of the Australian Tort and
Contract Law, the case study provided has been taken into consideration to help in better
understanding. This report deals with issues of contract infringement and sheer negligence
resulting in financial loss, its legal consequences and the solutions that can be adopted to
eradicate the crisis. The purpose of this report is to analyze a legal business issue, the relevant
law and recommend a solution, with reference to Australian Tort and Contact Law.
Tort law and Contract law
Australian Tort Law has been formulated with a combination of a set of laws that are
based on common legal principles and legislative actions. Not similar to that of breach of
contracts, Tort Law is not directly dependent on any agreement between two clients or lawsuit
(Abraham, 2017). Just like any legal criminal judgment that is implemented by the government,
Australian Tort Law actions are brought up civilians in case of any tortuous action that includes
financial compensation, damage compensation and injunctions (Epstein & Sharkey, 2016). Tort
law as incorporated under the Australian Legislation, unlike any other administrative
prosecution, do not involve in paying any compensation to the courts (Goldberg, Sebok &
Zipursky, 2016).
Contract law as enforced under Australian Legislation refers to the voluntary agreement
between two or more participants in terms of performing any service (Hillman, 2012). This is

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legally enforced by law bound by certain terms and conditions, breaching of which can result in
legal intervention (Knapp, Crystal & Prince, 2016).
Issue 1
According to the case study, Ellen has a strong ground of filing a case against the council
for misguiding her. The council was equally responsible for employment of such an officer who
did not have the minimum responsibility to study or understand the query of the client before
offering a solution or assuring. Even though the council worker had other issues to resolve, it
should have been considered that all the cases and clients are equally important.
The council worker was an official worker of the office who had been appointed to look
after the grievances and doubts of the clients and in the process of attaining one issue, he failed
to attend another important issue that resulted in the financial loss and a threat to the career as
well. The council worker knowingly or unknowingly performed a tortious act.
In short, the act that is caused due to negligence and injures someone financially is
classified under the Tort Act, according to the Australian Legislation. The council worker was an
official employee and failed to execute his duty dedicatedly and in this manner, he even breached
his contract with the council and considerably fell under the Contract Law (Chen-Wishart, 2012).
Issue 2 Contract Law
As per the case study, Ellen officially entered into an agreement with the owner of the
house to run her business of setting up a meditation studio and due to the misinformation
provided by the council worker, she failed to run her business, since the business needed a calm

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and quiet environment and jeopardized her career. As per the Australian Contract Law, Ellen
signed the agreement for a lease of one year and due to the failing in the business, she
unfortunately failed to pay the rent on time, according to the contract. The owner of the land can
probably file a case against Ellen under Contract Law as per the Australian Legislation for
breaching of the contract that was signed between him and Ellen, while taking the lease of the
terrace (McKendrick, 2014). Although this was not at the fault of Ellen since she had a different
perspective about the business along the studio set up and she completely relied on the assurance
by the council worker, which proved to be disastrous for Ellen, her health, business, career and
financial stability.
Issue 3 Tort of negligence
The council worker is the primary reason that was responsible for all the chain reaction,
resulting in the losses. The council worker had an urgency to resolve another issue and in this
turn, he recklessly overlooked the main requirement of the enquiry that came to him previously
and misinformed the client that resulted in the financial loss of the client who deliberately failed
to set up a successful business. In this matter, Ellen can file against the council worker under the
Australian Tort law for allegedly neglecting the priority and gravity if the enquiry that resulted in
the financial injury of the client and making her breach a law that was equally penalizing. Ellen
can file against the worker to compensate for the loss that was incurred by both Ellen and the
landowner for the breaching of the Contract Law (Poole, 2012).

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Conclusion
With the help of this report, it is clear that Ellen was not at all responsible for the
breaching of the Contract law that was signed in between her and the landowner. Ellen had to
pay the price of setting up a meditation studio under the misguidance of the council worker and
alleged broke a law due to the inability to pay the allotted rent, due to her sinking business. The
negligence of the council worker made Ellen suffer mentally, financially, her career was in stake
and made her break a law, which she did not anticipate. Ellen can be filed against under the
Australian Contract Law by the landowner for the breaching of the contract and Ellen in turn can
file against the council worker under the Australian Tort Law for sheer negligence in advice that
resulted in financial injury causing further damage to the reputation as well. As per the
Australian Legislation, the council worker is liable to pay compensation to Ellen for advising
irresponsibly and in turn making her face legal convictions for breaching of contract.

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Reference
Abraham, K. (2017). The forms and functions of tort law. West Academic.
Chen-Wishart, M. (2012). Contract law. Oxford University Press. Goldberg, J. C., Sebok, A. J.,
& Zipursky, B. C. (2016). Tort Law: Responsibilities and Redress. Wolters Kluwer law
& business.
Epstein, R. A., & Sharkey, C. M. (2016). Cases and materials on torts. Wolters Kluwer Law &
Business.
Hillman, R. A. (2012). The richness of contract law: an analysis and critique of contemporary
theories of contract law (Vol. 28). Springer Science & Business Media.
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2016). Problems in Contract Law: cases and
materials. Wolters Kluwer Law & Business.
McKendrick, E. (2014). Contract law: text, cases, and materials. Oxford University Press (UK).
Poole, J. (2012). Casebook on contract law. Oxford University Press.