Adeline decides to sell her successful financial advising business to Peter. The sale goes through and Peter takes over the business. He does not change the name, or release any new promotional material figuring the client's may not be particularly happy with a change of owner. Adeline does not make any clients or creditors know as she has taken a 4 month holiday.Things do not go well for Peter in the new business and he has not paid any creditors for 2 months. Adeline is surprised to find, on her return, a number of demands for money from the banks involved totalling $25 000. There is also a number of clients waiting outside her house wanting to talk about the losses on their investments. Peter changed all of their investments from low risk to high risk and their value has crashedAdeline insists she is not responsible for the $25 000 and will not be paying the banks as the debts are Peter's. Adeline also insists she is not responsible for any losses her former clients have suffered due to Peter changing the investmentsRequiredDiscuss with reference to relevant case law whether:

a) Adeline is liable for the $25 000?

b) Adeline is responsible for the losses on the investments?

Resource

https://legalvision.com.au/agency-relationship/

https://lawquarter.com.au/represents-business-agency-law-australia-part-one/#:~:text=This%20doctrine%2C%20crafted%20by%20the,is%20their%20agent%5B1%5D.

https://www.taylorandscott.com.au/taylor-scott/affected-professional-negligence/

Your task is to read the case study and formulate a legal analysis using the IRAC method.

I = Identify the Issue(s)

R = Relevant Law

A = Apply the law to the facts

C = State your Conclusion =, which should answer the Issue(s)You need to identify the legal issues that arise in the case studies, state the relevant law , apply the law to the facts of the case study and reach a conclusion. The conclusion that you reach will be the advice that you can provide to the participants in the case study. The following substantive areas of law will be dealt with in the Assignment: Contract law Law of agency Negligence

Demonstrates a capacity to identify legal issues from a set of facts Demonstrates knowledge and understanding of substantive areas of law including contract, agency and property law Shows an ability state legal principles supported by appropriate legal authority Demonstrates a capacity to apply legal principles to the facts of a case study. shows a sophisticated understanding of the key issues demonstrates a capacity to explain and apply relevant concepts justifies any conclusions reached with well-formed arguments not merely assertion provides a conclusion or summary complies with normal academic standards of legibility, referencing and bibliographical details (including reference list). is written clearly with accurate spelling, grammar and sentence and paragraph construction appropriate citation and referencing used (using Australian Legal Citation Guide)