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The purpose of the assignment is to allow you the opportunity to apply research skills and legal reasoning to identify the legal issues and the options available to Emile & Laila in the case study.
Advise Emile and Laila about what steps they can take.
Emile & Laila buy a Caf in a shopping centre for $250,000. They use a solicitor to help with the tranactions and the Contract for the Sale of Business is a standard form document. From the seller they acquire the name Prima Caf and all the equipment needed to operate the Caf (Fittings, coffee making equipment, tables and chairs and plates cups and cutlery). As part of the purchase they are assigned the lease from the Shopping Centre owner: Dentro.
The lease is a standard Shopping Centre type lease governed by the Retail Leases Act. After three months of operating the Caf, Emile & Laila receive from Dentro a Demolition Notice that the part of the shopping centre occupied by the caf will be demolished. They will lose their business and have nowhere to operate.
They look at the lease and it contains a demolition clause which permits Dentro the shopping Centre owner (the Lessor) to demolish parts of the Centre under certain conditions
Whose fault is it that Emile & Laila will lose the business they have bought. Can they get compensation? Can they sue their lawyer for not warning them that the lease contained a demolition clause? Is the potential action against the lawyer an action for the tort of negligence or breach of contract or both? What is an implied term in a contract for services?
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