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Business  Corporate Law


Corporate law or business law is the primary body that governs the relation between the companies, conducts and person and organisations. It primarily refers to the legal practice on the theory of organisational practice. As per the case scenario, Peter is real estate developer, who develops the residential apartment complexes in the Wollongong local area. He has purchased the property for $2 million. He is now planning to build large apartment complex on the purchased land block at considerable profit. In this case, the council has denied the developmental application based on a road-widening proposal. This road-widening proposal has reduced d the value of the block to $1 million. It has been observed that Peter has obtained a certificate before purchasing this block of land. After the review of that certificate it has been visualised that this block of land has been a subject to road widening proposal, which must be disclosed by the council. However, no such disclosures have been found in that certificate. Then the mistake of the Wollongong council can be justifiable. The peter has understood that if council become careful to disclose such details in the proposal, Peter can go ahead with the land purchase and his further plan. Therefore, now Peter wantsto sue the council for getting required remedies or other alternativefor make over the certain economic loss. In this case, council has told that the claim regarding negligence only can be applied to written words, physical actions and on the physical damage on the property. The council has told that they are not liable to provide any remedies in regards to economic loss of Peter. Therefore, the legalissues are occurred as per following criteria:

Did the Council owe a duty of care to the Peter in regards to the written and the oral information in relation to the purchased block of land? Are there any remedies available for the Peter through legal case against the Wollongongcouncil? 


In the course of selling or leasing a property, real estate agent makes the statement to the intending purchaser. In this case, the property in this context includes the sales related concern along with the real property. After the sale, the real estate agent and the council must make statement and proper discloser. If in any case, the purchaser considers that the actual paid amount for the property becomes reduced due to false statement, he or she can seek compensation from the real estate agent or the government council. In this case, the legal requirement in the negligent misstatement action has been visualised. As per the current statement, the plaintiff or the purchaser in a negligent misstatement action has to provide following factors:

a The defendant or the council owes the plaintiff a duty of care

b Defendant failed to confirm the requirement of care standard

c There is presence of material damage to the plaintiff, which is caused by the defendant.

Duty of care is the primary rules, which must been followed in case of purchasing and selling of any types of property. In this case, Tort of negligent misstatement can be defined as wrongful act or omission for giving rise to any civil action. The tort of negligent misstatement is considered as inaccurate statement, which made honestly but there is issue in duty of care. The law of Torts is concerned to compensate the victim rather than the punishing the wrongdoer. In this case, the person must owe a legal duty of care for understanding the factors, which are required to monitor the agreements, which are liable for negligence. Negligent misstatement is a misleading factor, where a breach has been visualised to meet the require standard of the care owed. Therefore, in the current case scenario duty of care in regards to Civil Liability Act must be applied. 


In duty of care if the issue of economic loss is visualised, negligence does not entail the liability unless the defendant owed the plaintiff. Characterisation of the harm is required to apply correct test to monitor reasonable care attributes. From the year of 1960, with the expansion of duty of care, compensation can be claimed for pure economic losses, which are lading from the defendant’s negligence. As per the various report it has been visualised that pure economic loss is evident while the plaintiff suffers a financial loss due to negligence of defendant. In the case scenario of Sutherland Shire Council v Heyman, the court has observed that the plaintiff has suffered economic loss. The court can easily find out the issues in duty of care while the physical damage is evident. On the other hand, the court has reluctant to compensate pure economic loss, while there are no personal damage and injury. In economic loss, plaintiff generally losses the 

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