Ellen is a graduate of The College of Alternative Medicine and was looking to start her own business in recent past. She decidedto open a meditation studio and looked around the inner city suburb of Paddington for suitable premises. She eventually found a terrace house near Oxford Street, Sydney, NSW. The owner of the premises was willing to enter in a 12-month lease, however, Ellen waited for a week so that she could check with the local council as to the suitability of her business. Followed on, Ellen went to the council office and identified the counter marked as “Business Inquiries”. She asked several questions to the attended council employee including a question about building work in the area. She asked:“my meditation studio requires a calm environment. Is there anything that could cause noise near by?”.The council officer was called away before being able to answer. Upon return the officer had a very quick look at the computer and replied to Ellen that:“relax everything will be fine”. After gathering together the council information, Ellen then signed upthe lease on the next day. But, within two weeks of the opening of the meditation studio,she found that some builders’ men were started workingnext door. She asked one of the builders as to how long they would be working. The worker replied in that “It’s a big job, a total renovation. It should take at least 6 months”. Although Ellen tried to run her meditation studio,but the noise from the building was too stressful. Clients were not happy. After a month into the lease, Ellen was so stressed by the development of construction noises from next door which resulted in a nervous disorder to her. This gave rise a threat to her career in alternative medicine.Ellen even reduced the operating hours of her meditation studio to avoid the construction noises. This reduction ultimately resulted in financial distress which caused her falling behind in paying rent for the premise.
Required: Based on the above you are required to write a case study report . In your demonstration, not least, you must answer the following questions:
·Issue 1: Explain critically as to whether Ellen hasa claim against the council in relation to the advice she had received.
·Issue 2: Has there been a breach of contract between Ellen and the Landlord for non-payment of rent?
·Issue 3: Has there been a negligent misstatement by the Council worker?
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