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BUSINESS LAWPage 1                                       Kaplan Business School Assessment Outline    Assessment 2 Information Subject Code: BUS107  Subject Name: Commercial Law  Assessment Title: Assignment  Assessment Type: Assignment   Choose an item.: 1,200 Words (+/-10%)  Weighting:  40 %  Total Marks: 40  Submission: Via Turnitin  Due Date: Week 10 .   Assessment Description     • There will be a webinar to assist you with preparing this assignment. Watch out for the  webinar time and date details to be posted in the Subject Announcements. • This assignment covers the Law of Torts (Week 5).    • You will need to identify the issues in the question, cite the relevant rules applicable to the issues,  explain the application of the rules to the facts/situation in the problem and draw a conclusion as to  the best advice for the person/s you are providing advice (IRAC). Assessment Problem Based Question      Peter is a real estate developer. He develops residential apartment complexes in the Wollongong local  area. He purchases a large block of land for $2 million and plans to build a large apartment complex on  the block at a considerable profit. But Wollongong Council denies his development application on the  basis of a road widening proposal that will substantially reduce the size of the block. This road widening  proposal reduces the value of the block of Peter’s land to $1 million. Peter reads the council certificate he obtained from Wollongong Council. If the block of land had been  subject to a road widening proposal then it should have been disclosed by Wollongong Council in the  certificate. There is no such disclosure in the certificate. As Peter didn’t bother to read the certificate  before he purchased the land, he is relieved to find the council has made this mistake. He secretly knows  that if Wollongong Council had been careful and included the road widening disclosure in the certificate,  he would not have seen it and gone ahead with the land purchase anyway. Peter now wants to sue Wollongong Council in negligence for economic loss. Wollongong Council claims  that negligence only applies to physical actions, not written words, and is only applicable to physical  damage to people or their property, not economic loss. Advise Peter. Page 2                                       Kaplan Business School Assessment Outline    Important Study Information      Academic Integrity Policy    KBS values academic integrity. All students must understand the meaning and consequences  of cheating, plagiarism and other academic offences under the Academic Integrity and Conduct  Policy.    What is academic integrity and misconduct?  What are the penalties for academic misconduct?  What are the late penalties?  How can I appeal my grade?    Click here for answers to these questions:  http://www.kbs.edu.au/current-students/student-policies/.      Word Limits for Written Assessments    Submissions that exceed the word limit by more than 10% will cease to be marked from the point  at which that limit is exceeded.      Study Assistance    Students may seek study assistance from their local Academic Learning Advisor or refer to the  resources on the MyKBS Academic Success Centre page. Click here for this information. http://www.kbs.edu.au/current-students/student-policies/ https://elearning.kbs.edu.au/course/view.php?id=1481

Moumita · Accepted Answer

BUSINESS LAW
Table of Contents
	
Introduction	3
1. Does Wollongong Council owe Peter a duty of care?	3
2. Did Wollongong Council breach their duty of care by falling to meet the standard of the care?	4
3. Were Peter's losses caused by Wollongong Council's actions and are those losses not too remote?	5
4. Can Wollongong Council potentially rely on the defence of contributory negligence?	6
5. Can Wollongong Council potentially rely on the defence of voluntary assumption of risk?	6
6. Can Peter accuse Wollongong Council in negligence for economic loss?	8
Conclusion of the case study	8
References	9
Introduction
Peter wants to set up a residential complex in the area of Wollongong Council, as he is a property developer. He purchased a large land in the area of the Council of Wollongong. His intension was to set-up a property amounting to 2 million dollars for maximisation of the profit levels. However, as the Council of Wollongong due to the road extension proposal cancelled his proposal, the margin of the profit level decreased to 1 million dollars. A certificate was obtained from the Wollongong Council and this fact was not clearly mentioned in the certificate. Peter accused the Wollongong council because of their negligence. However, the actual event was that the case happened due to the negligence of Peter during reading of the document that was obtained from the Council. 
1. Does Wollongong Council owe Peter a duty of care?
Issue
Peter bought a plot of land in the area of Wollongong council. The project proposed by Peter was rejected by the Wollongong council. Because of this action taken by the Council, he suffered losses amounting to about 1 million dollars. Peter considered it was a major loss for him.
Rule 
Duty of Care is the legislative nature of performance of state and council. It ensures individuals about their security (Srivastava, Srivastava &Srivastava, 2018). It hinders the event of damage, risks and losses.
Application
The aim of the Duty of Care is to provide the protection to the people and secure them from risks and major loses. Individuals follow it because of its potentiality to provide safety and security from different kinds of damage. 
Conclusion
According to the case study, the Wollongong Council has an obligation to provide a Duty of Care towards Peter, as he was the neighbour of the Council.
2. Did Wollongong Council breach their duty of care by falling to meet the standard of the care?
Issue 
Concerning study of the case of Peter, the council of Wollongong did not give allowance for development of construction project of Peter at the Wollongong location. The reason behind this cancellation of the project was the extension the road in this area. Because of this rejection, Peter had suffered a loss of 1 million dollars. The proposal of road broadening was not clearly declared in the provided certificate of Wollongong council. 
Rule
As stated by Vreugdenhil (2017), Allocation of Duty of Cares to neighbour from any council is the major role, which is clearly mentioned in the state laws.
Application
Since Peter bought a plot in the ground of the Wollongong Council, therefore he became a neighbour. Therefore, the provision of duty of care towards Peter from Wollongong council was the major duty.

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