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LAW100 Introduction To Business Law

tag 0 Download 12 Pages / 2,867 Words tag 09-07-2021

Question 

Case Study

Ellen is a graduate of The College of Alternative Medicine and is looking to start her own business. She decides to open a meditation studio and looks around the inner city suburb of Paddington for suitable premises. She eventually finds a terrace house near to Oxford St., the main street of Paddington in Sydney, NSW

The owner of the premises is willing to enter a 12 month lease however Ellen asks him to wait for a week so that she can check with the local council as to the suitability of her business.  Ellen attends the council offices and goes to the counter marked “Business Inquiries”.

She asks several questions of the council employee including a question about building work in the area.  She says “my meditation studio requires a calm environment is there anything that could cause noise nearby?”

The council officer is called away before being able to answer.  When he returns he has a very quick look at the computer and says to Ellen “relax everything will be fine”.  Ellen signs the lease the next day however within 2 weeks of opening the meditation studio she sees builders arrive next door.

She asks one of them how long they will be working next door. The builder replies “It’s a big job, a total renovation. It should take at least 6 months”.  Ellen tries to run her meditation studio but the noise from the building is too stressful on Ellen and her clients.  A month into the lease, Ellen is so stressed by the development noise from next door, that she develops a nervous disorder that threatens her career in alternative medicine.

Ellen reduces the operating hours of her meditation studio to avoid the builders’ noise but starts to fall behind in her rent for the premises.  

Issue 1: Explain whether Ellen has a claim against the council in relation to the advice she received.

Issue 2: Contract Law

Has there been a breach of contract between Ellen and Land Lord for non-payment of rent?

Issue 3: Tort of negligence

Has there been a negligent misstatement by the Council Worker?

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