Btx9500 Assignment
DEPARTMENT OF BUSINESS LAW & TAXATION
BTX9500 Business and Corporations Law
SEMESTER 1, 2013
ASSIGNMENT
1. Mary and Fredrick decide that they want to purchase a property in the Adelaide Hills. After months of searching they find a sprawling property set in twenty acres of land. The property has vast bushland which attracts several species of native birds and animals. Mary and Fredrick like the property for that reason and because it would be ideal for them to build their dream home in the beautiful setting.
In order to purchase the property they approach the Loans R Us bank to borrow funds. Mary and Fredrick have never banked with the Loans R Us bank but they have several loans with the Savings Bank. The bank manager at Loans R Us tells Mary and Fredrick that they will need to produce evidence of their ability to pay their loans to the Savings Bank so that he can assess whether his bank will lend them the money. Mary and Fredrick obtain a letter from Savings Bank which states that it is confident that Mary and Fredrick would be able to pay back any mortgage with Loans R Us based on their past credit history with Savings Bank. However the banker from Savings Bank was new and misread the file not noticing that Mary and Fredrick had defaulted several times on their loans. As a result Loans R Us lent Mary and Fredrick $500,000 to purchase the property.
Mary and Fredrick also write to the local roads authority to investigate whether there are any proposals that may affect the property. The roads authority replies that there are no proposals to build roads in that area. This is not true: in fact the roads authority has approved the construction of a major highway which will run through the middle of the property. As a result Mary and Fredrick buy the property and draw up plans to build their dream home.
Six months after buying the property Mary and Fredrick discover the roads authority’s plans to build a highway through their property.
BTX9500 Business and Corporations Law
SEMESTER 1, 2013
ASSIGNMENT
1. Mary and Fredrick decide that they want to purchase a property in the Adelaide Hills. After months of searching they find a sprawling property set in twenty acres of land. The property has vast bushland which attracts several species of native birds and animals. Mary and Fredrick like the property for that reason and because it would be ideal for them to build their dream home in the beautiful setting.
In order to purchase the property they approach the Loans R Us bank to borrow funds. Mary and Fredrick have never banked with the Loans R Us bank but they have several loans with the Savings Bank. The bank manager at Loans R Us tells Mary and Fredrick that they will need to produce evidence of their ability to pay their loans to the Savings Bank so that he can assess whether his bank will lend them the money. Mary and Fredrick obtain a letter from Savings Bank which states that it is confident that Mary and Fredrick would be able to pay back any mortgage with Loans R Us based on their past credit history with Savings Bank. However the banker from Savings Bank was new and misread the file not noticing that Mary and Fredrick had defaulted several times on their loans. As a result Loans R Us lent Mary and Fredrick $500,000 to purchase the property.
Mary and Fredrick also write to the local roads authority to investigate whether there are any proposals that may affect the property. The roads authority replies that there are no proposals to build roads in that area. This is not true: in fact the roads authority has approved the construction of a major highway which will run through the middle of the property. As a result Mary and Fredrick buy the property and draw up plans to build their dream home.
Six months after buying the property Mary and Fredrick discover the roads authority’s plans to build a highway through their property.