Can norris sue estate agent for his negligent misstatements
Course:- Business Law and Ethics
Reference No.:- EM13832097

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Introduction to Business Law

Word limit: 1500 words

Purpose: To apply and assess legal problem solving skills.


1. This assignment is to be completed in a group of two to four students - no exceptions.

2. The group is self-managing and you are to form your own group.

3. You may form a group with students enrolled in the unit - need not be in the same tutorial group.

4. All three questions are compulsory

5. Maximum number of words: 1,500 total (excluding references).

7. Submit only one per group - it is the students' responsibility to have their names and student numbers listed on the assignment to be awarded a mark.

8. 10% of the maximum available marks (i.e. 30 marks) will be deducted per day of late submission.

9. Essay format: legal problem solving format.

10. Referencing format: Australian Legal Citation.

Question 1-

D, a manufacturer of widgets, runs a promotional competition. Part of the "fine print" on the entry form reads: "It is a condition of this competition that nothing herein shall give rise to any legal relationship, rights, duties or consequences whatsoever or be legally enforceable, but shall be binding in honour only."

When P learns in the media that D has lost a number of the entries, P wishes to sue D for negligence. Can P sue D? Analyse on the contractual point only. Ignore all other areas of law.

Question 2-

Retail Pty Ltd sells domestic and commercial hardware to both trade and retail customers. At the time of sale, Retail proposes to hand to all customers an invoice on which is printed in legible, but very small, print one of the following:

1. "All implied conditions and warranties are excluded to the extent, if any, permitted by law."

2. "No returns and no refunds."

3. "The liability of Retail Pty Ltd is limited to the cost of repairing defective products." What is the legal effect of each of these under the ACL? Ignore all other areas of law.

Question 3-

Norris had decided for some time that he wanted to purchase a motel. After looking at several different areas, he settled on Port Stephens in New South Wales as offering both the potential for a business and the lifestyle he was seeking. He rang a number of real estate agents, inquiring whether they had any motels listed for sale. He finally found a motel and general business listed with an estate agent called Evatt. Evatt told Norris that once he got going in this business it would be a gold mine. Norris sought an accountant's advice and then proceeded to buy the business. Within six months of buying the motel and general business Norris was broke because there were neither the tourist numbers nor the local population to sustain the business. Can Norris sue the estate agent for his negligent misstatements about the business? Will he succeed? Ignore all other areas of law.


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While analyzing the case we can able to understand that, P understand that, D has lost a number of the entries which reduced the chance of P get to prizes from the competition conducted by the company. We know the fact that, D implemented promotional competition for attracting the customers for buying the product, it is the duty of the manufacturer to conduct the competition in a productive manner.

In this case, we can able to understand that P wishes to sue D for negligence in which it will affect the operations of the manufacturer. The major issues is related with entries considered as a part of contract.

Rules :

While analyzing the case we can able to understand that rules related with the consideration is applicable in this case. As per the contract law, consideration can be called as something in return. In this case, both parties related based on the condition explained in the agreement.

In order for creating a binding contract there exists a contractual as well as legal relationship with the parties. The statement

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