Assignment task:
Gary is a real estate agent who has only recently graduated from RMIT school of real estate. He completed his course online and it is not altogether clear with the online component that it was all his own work nevertheless he seems to have the relevant qualification certificates.
He recently secured his first job with "Take A Chance" real estate. He is keen to make an early impression with his employer and he was given his first property which was 1 Swamp St Carlton.
He received an inquiry from Melissa who is a first home buyer and although she is quite keen to secure her first home she hasnot bought property before. Gary and Melissa went out to view property. When inspecting the property Melissa had a number of questions. The property was a deceased estate and so the Vendor Executor was very keen to finalise the sale. To Melissa the land area appeared quite large, but the house was quite run down. She asked Garry whether she will be able to subdivide the property.
Gary sensing that this was important to Melissa and as he was keen to please Melissa, decided that even though he did not know (as he had not bothered to check the plans) he said to her it was a great area for development and that there have been other developments in the area so he couldn't see why you could not sub divide the property.
In fact, had he viewed the vendor statement certificates and read them very carefully he would have seen that subdivision was not possible. Keen to secure the sale, he said the Council usually approves this kind of development. Melissa was immediately presented with a Contract of Sale and made a written offer. She was delighted that later in the day the Vendor had accepted her offer.
The settlement process preceded in the normal way. Melissa later engaged a surveyor to write an application for subdivision. She was shocked when she discovered that the Council refused the application. It turns out that sort of property Melissa bought in the area there is no prospect of getting Council approval.
Required: applied the IRAC method to answer the question and give detailed references.
Melissa now seeks your advice. When responding and providing advice, you need to outline the steps Melissa would take for discharging the contract.
In providing advice, you must address the following particulars:
1. Identify any applicable issues e.g. misrepresentation.
2. State relevant law in relation to issues identified including citation of at least one (1) relevant case. Students are also expected to apply the relevant case(s) to the factual situation in the given scenario and then reach a conclusion (and state that conclusion clearly and concisely).
3. Are either of the parties involved entitled to rescind the contract? If so, outline the relevant procedures and how they would be applied with reference to applicable common law and statutory principles.
4. What remedy/remedies, if applicable, are available to either party? Where applicable, summarize how the remedy/remedies would be applied with reference to applicable common law and statutory principles.