Jimmy wanted to purchase a motel. After inspecting a number different areas, he decided he would buy a motel in Port Phillip, Victoria as this would give him not only the business he wanted but also the lifestyle he craved. He contacted several real estate agents, inquiring whether they had any motels listed for sale. He finally found a motel and general business listed for sale with an estate agent named Andrew.

Andrew told Jimmy that once he got going in this business it would be a gold mine. Within six months of buying the motel and general business Jimmy was broke because there were neither the tourist numbers nor the local population to sustain the business.

Can Jimmy sue Andrew, the real estate agent, for his statements about the business?

A)In your answer explain the meaning ofnegligenceand identify theelementsthat must be satisfied in order to establishnegligent misstatement.(5 Marks)

B)Explain thestandard of carethat is expected of persons holdinga particular skilland thestandard of care for professionals(5 Marks)

C)You will also need to addresswhether Jimmy had contributed to his own financial damageorJimmy had voluntarily assumed the riskof the business failing when he asked Andrew for advice.Explain whetherJimmycan claimdamagesagainstAndrew(5 Marks)

Please make sure you use statutory provisions and relevant cases to support your legal arguments.