QUESTION ONE Jack, a professional builder, built a combined residential and commercial building complex south of...

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QUESTION ONE Jack, a professional builder, built a combined residential and commercial building complex south of Brisbane in 2017. Jack had the required building certification carried out by a friend who was a licensed building certifier. Jack's friend has since travelled overseas and his whereabouts are unknown. Prior to any residents moving into the building complex, or the signing of any commercial leases, in early 2018 Jack sold the complex to Barry who had no previous building experience. Originally, Jack had intended to sell the residential apartments and manage the commercial aspect of the complex himself but due to his increasing workload as a professional builder, he decided to sell the building complex. Prior to his purchase, Barry did not engage an engineer to carry out an inspection. The contract of sale did contain some very vague terms covering latent defects and the quality of work in the building. Barry did not have any insurance to cover the circumstances due to difficulty he experienced in arranging insurance at the time of the purchase from Jack. Soon after ownership was transferred to Barry, he noticed cracks in several walls of both the residential apartments and the commercial area. Barry engaged a structural engineer who concluded that the cause of the cracks was due to the inadequate foundations. Prior to the commencement of construction, Jack decided that detailed soil tests of the construction site were unnecessary. On the basis of expert advice, the entire building complex had to be demolished. Barry's decision to purchase the building complex from Jack was influenced by documents put on public display by the local council. The public documents encouraged property development in the local area and emphasised the opportunity to make substantial financial gain within the "planned area". Although the building complex was within the "planned area", following Barry's purchase, the local council announced that it would not proceed with any development in the "planned area". Barry's decision to purchase the building complex was also influenced by advice he received over the phone from a friend, Joanne, who is a financial adviser. Barry did not pay for this advice from Joanne who stated over the phone that she would not accept any responsibility whatsoever for her advice. During this telephone conversation with Joanne, Barry did emphasise the importance of the advice. Provide Barry with advice as to his legal position. Restrict your advice to the issue of duty of care. (30 MARKS) QUESTION ONE Jack, a professional builder, built a combined residential and commercial building complex south of Brisbane in 2017. Jack had the required building certification carried out by a friend who was a licensed building certifier. Jack's friend has since travelled overseas and his whereabouts are unknown. Prior to any residents moving into the building complex, or the signing of any commercial leases, in early 2018 Jack sold the complex to Barry who had no previous building experience. Originally, Jack had intended to sell the residential apartments and manage the commercial aspect of the complex himself but due to his increasing workload as a professional builder, he decided to sell the building complex. Prior to his purchase, Barry did not engage an engineer to carry out an inspection. The contract of sale did contain some very vague terms covering latent defects and the quality of work in the building. Barry did not have any insurance to cover the circumstances due to difficulty he experienced in arranging insurance at the time of the purchase from Jack. Soon after ownership was transferred to Barry, he noticed cracks in several walls of both the residential apartments and the commercial area. Barry engaged a structural engineer who concluded that the cause of the cracks was due to the inadequate foundations. Prior to the commencement of construction, Jack decided that detailed soil tests of the construction site were unnecessary. On the basis of expert advice, the entire building complex had to be demolished. Barry's decision to purchase the building complex from Jack was influenced by documents put on public display by the local council. The public documents encouraged property development in the local area and emphasised the opportunity to make substantial financial gain within the "planned area". Although the building complex was within the "planned area", following Barry's purchase, the local council announced that it would not proceed with any development in the "planned area". Barry's decision to purchase the building complex was also influenced by advice he received over the phone from a friend, Joanne, who is a financial adviser. Barry did not pay for this advice from Joanne who stated over the phone that she would not accept any responsibility whatsoever for her advice. During this telephone conversation with Joanne, Barry did emphasise the importance of the advice. Provide Barry with advice as to his legal position. Restrict your advice to the issue of duty of care. (30 MARKS)

Answer rating: 100% (QA)

In the given scenario the key issue to be addressed is whether Jack the professional builder owed a duty of care to Barry the subsequent purchaser of ... View the full answer