18T2_LAW100 Business Law: Major Assignment - the Case Study Question Ellen is a

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18T2_LAW100 Business Law: Major Assignment - the Case Study Question
Ellen is a graduate of The College of Alternative Medicine and was looking to start her own business
in recent past. She decided to 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 nearby?”.
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 up the lease on the next day. But, within two
weeks of the opening of the meditation studio, she found that some builders’ men were started
working next 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 (minimum length is 1,500 words).
In your demonstration, not least, you must answer the following questions:
Issue 1: Explain critically as to whether Ellen has a 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?
The case study must be done individually. You are required to submit the case study report in Turnitin
on Moodle site of this unit and a copy to anurag@pia.edu.au by the due date.
Further Instructions:
In this exercise, students are required to apply their knowledge of Contract Law and Tort Law to
analyse a business problem.
In this written report, students should identify the major legal issues, identify relevant legal rules and
precedents, apply the rules to the facts and recommend a solution. Further details and additional
hints of how to write the report will be provided during the term.
Legal Problem Solving

Explanation / Answer

CASE STUDY

In the above given case, A lady, Ellen who wanted to start his own business by opening a meditation studio & was in search of the peacful and suitable place in the city. Although she at last founded one but signed the lease agreement of 12 months only after getting her full queries clear from the local council officer. At the Council office she went to a desk which reads "business queires" on it to get all her doubts clear. Business Queries is the department which clears all your business related problem or query. Here, the problem may be related to the product or services the individual is dealing in, or can be related to the legal, financial, cost , scope of the business and so on. Here all the problems related to only the business has answered.

Here, according to the above case, Ellen asked the officer that she wanted a peaceful place to start his business in the city. The council officer may responsible for searching a best place for her but is not responsible about the construction work which might take place near as he is not accountable to such things. To answer such question does not come under his job description. It was an unknown evnet to both ellen and the officer. But the case also had mentioned that this question was unheared by the officer as he later called by someone and on returning back he gave a green signal to ellen to pursuing for that building. He could had told her that these information are not with us and she must get this inquered from other helping departments but he didn't paid much attention.

After attending the council and clearing all her doubts Ellen signed the lease agreement the very next day. But unfortunately within a month the business went into debt because of the new construction work which was going on to the very next distrubing the customers during the meditation. This disturbance resulted into a stress to the customer and a poor feedback from them. Eventually, Ellen's business was not giving her profits and pushed her into debt of paying rent to the landlord.

Whether Ellen has a claim against the council in relation to the advice she had received?

No, Ellen could not file a claim against the council in realtion to the advice she had received. Because it is not the duty of the "business inquery" employee who is responsible to such construction issues. He is only accountable to the issues which is related to the business issue and this question does not come under this head. Although the officer must pay the attention and could had adviced her to ask such queries with the required helping departments but he didnt. That puts the officer to some default but still he is not liable to pays the debt.

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

According to the case provided, Ellen before starting her meditation sudio at that building signed a legal LOI (Letter of intent) which tooked between the tentant and the landlord. The legal lease agreement was for 12 months. As the transaction includes a legal process here ellen had breach a legal contract between the two.

According to the Sydney's Law, the landlord can take the following legal steps if the tentant fails to give the rent:-

1. EARLY ACTION:-

2. SERVING A TERMINATION NOTICE:-

If the tenant falls more than 14 days behind with the rent, you can serve them with a termination notice, giving them 14 days to vacate the property. The notice must:

3.APPLYING TO THE TRIBUNAL:-

You can apply to the Tribunal at the same time or after serving a termination notice to the tenant.

If you apply at the same time as giving notice, this will save you time, as the Tribunal will be able to list your hearing sooner. Alternatively, you can wait until after the termination date in your notice before applying to the Tribunal. This way you will know if you need a hearing, because the tenant has not moved out or has not paid (or is not paying off) the rent owed. The application cannot be made more than 30 days after the termination date in the notice, unless you apply for and the Tribunal grants you an extension.

Its totally depents upon the landlord that which among the above decision he wants to take.

Has there been a negligent misstatement by the Council worker?

Yes, there has been a negligent misstatement by the Council worker because he could has advised Ellen properly to her query regarding that building but he was rather getaway mentally with other thoughts running in his mind. This negligence has cost so much to Ellen that she had to close his business of meditation studio and this also has act in breaching of a leagl contract which tooked between her and the landlord as the failure of business resulting in the non payment of the rent.

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