Daniel and his wife Hillary want to buy Real Estate Assignment

Assignment Task

Daniel and his wife Hannah want to buy a house in the country. They received a brochure from a property developer, Dolphin Estates Pty Ltd, advertising a housing development called “Lake View Retreat” at Murrumbateman. The brochure contains a number of statements, including the following:

• A little piece of paradise – you’ll think you’ve died and woken up in heaven”;
• A ll the appliances throughout the house, in the lounge, kitchen and laundry, will be European brands”; and
• Every house will have a view of the lake”.

The brochure also has a number of photos featuring a prominent lake at the centre of the development, but no statements about its size or location. Purchasers are often keen to buy “off the plan” (that is, to sign a contract to purchase before the house is built) because of the significant savings on stamp duty. Daniel and Hannah negotiate with Max, the managing director of Dolphin Estates Pty Ltd. During the negotiations Max confirms the statements about the appliances and the lake. Daniel and Hannah are thrilled and immediately sign a contract of sale. The contract contains no refence to the European appliances nor does it mention the lake.

The house is completed in January 2023 and Daniel and Hannah conduct the final inspections before moving in. They are disappointed to discover the appliances are cheap imports and, as they gaze out of their lounge room window, expecting a view of the lake, they realise the lake “concept” has been downsized and is actually more like a muddy pond. Suddenly Daniel and Hannah realize that this is not “a little piece of paradise” after all.

They seek your advice as to whether they have any contractual rights in respect of each of the statements referred to in the brochure. Support your arguments by using case law. (Do not refer to any claims that may be made under the Australian Consumer Law).

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