ArchiPtyLtdis acompanywhichprovidesarchitecturalservicesandadvice.ByletterArchiadvisedCharlie,oneofitsbuilderclients,aboutthetypesofbuildingmaterialsthatmustbeusedintheconstructionofresidentialbuildingstocomplywiththefirepreventionregulations.Charlie builta number ofhomes based on this advice. Further,Charliepassedthis letterofadviceontoanotherbuilder,BudgetBuildersPtyLtd(Budget).

Budgetalsobuiltseveralhousesbasedonthisadvice.Thelocalbuildingauthorityrefusedtoapprovetheconstructions statingthatthewrongmaterialshadbeenused.Thebuildingauthorityadvisedthattheincorrectmaterialmustbereplaced.This willcostCharlie approximately $80,000 andBudgetapproximately $200,000.

WhenBudgetinvestigatedthesituation, itistoldthatArchiPtyLtdbaseditsadviceontheoldregulations.Apparently,Archihadnotkeptuptodatewiththe recent changes to the law.

1. AdviseArchiPtyLtdif it owes a duty of care toCharlie.
2. Advise Archi Pty Ltd if it owes a duty of care to Budget Builders Pty Ltd.
3. Assuming Archi owes a duty of care to Charlie did it breach the duty of careunder the common law?
4. Assuming Archi owes a duty of care to Charlie did it breach the duty of care under the statute law- Wrongs Act?
5. Assuming Archibreached the duty of care, can Charlie claim damagesbasedon causation and remoteness?
6. (a)Are there any defences that Archi can use if sued in negligence by Charlie?(b) Would your answer be different if Charlie knew the information was based on old regulationsbut decided to take the risk anyway?

I needed the answers using IRAC method