Task description:
One of the more popular ways of evaluation is to ask students to unravel hypothetical legal issues. Generally speaking, you will be assigned a case or incident to read for this appraisal assignment during the semester, which finishes terribly (or less well) with one or more parties. Your job is to 'advise' or 'discuss' parties' privileges and responsibilities. Your recommendation (or legal discussion) must be law-based (cases or legislation).
Case Study
[ This Case Study Is Relevent With ‘Law Of Torts’]
Pauline graduated from the KL Horticultural College with a major in floristry.
Immediately after graduating, she set up her own cut flower business [“Blossoms”]. In early 2015, things were going well, and she was thinking about expanding the business. She met Daniel Sloan, an accountant and financial adviser. They discussed Pauline’s expansion plans and Daniel agreed to review her financial situation and prepare a business plan.
A month later, they met again. After Daniel had prepared some financials for Pauline and had researched the cut flower market, he advised Pauline that she was in a sound position to expand and recommended that she borrow money to set up a store in a trendy part of town. Pauline relied on him and decided to act on the advice. In January 2016, she borrowed $30,000 from Eastpac Credit, a small credit union that provided a loan and overdraft facilities.
Eastpac relied on the financial statements prepared by Daniel. She ten signed a five-yearlease, bought some equipment and hired a firm to design a web page.
Then things wen sour. Daniel admitted he had no adequately factored in her pre-existing debts, had underestimated the significant establishment costs associated with setting up a business in the area and the extent to which online florists had eroded the traditional retail market. Pauline has to terminate the lease (and pay six months’ rental) and default on the Eastpac loan. She has already spent $7,500 of her own money on the web page and other costs. Eastpac is faced with significant losses on the loan as much of the loan was unsecured.
Advise Pauline and Eastpac about their prospects of success in an action against Daniel in the tort of negligence.
