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Norris Case

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Submitted By elenita
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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.
In this case provide, Norris a particular a businessman decided to purchase a motel in Port Stephens NSW. Finally he found a motel and also the estate agent called Evatt. Evatt told Norris that the business will be very profitable. After six months the motel was bankrupt by the lack of customers. Norris wonder whether can sue Evatt for negligent misstatements.

In relation the material provided, the issue is whether Evatt owe Norris a duty of care. In this case we could speak about of Duty of care, which comes under the legal concept of negligence, and negligence belongs to the domain of Common Law1. This refers to “the obligation to take responsible care to avoid injury to a person whom, it can be reasonably foreseen, might be injured by an act or omission”2. Related to the case above exposed Evatt owed Norris a duty of care for economic purposes. Since the plaintiff, Norris, has suffered economic damage at the loss of their business, due to the slander of is agent Evatt. According

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