Joyce recently purchased a house, on a large block of land, in inner Sydney from Star Properties Ltd. Her dealings were with Phillip, the sales manager of Star Properties Ltd. Her plan was to demolish the house and build four small townhouses on the land; one to live in, one for her sister to live in and two for sale.

Joyce had little experience at property development and prior to purchasing the land she explained her plans to Phillip. She asked Phillip whether she would have any problems gaining a permit to build four townhouses. Phillip said to her, You wont have any problems. Joyce again stated her needs in relation to the land, and suggested that perhaps she should discuss her plans with her architect before proceeding with the purchase. Phillip reassured her that everything would be fine. He told her that he was a property agent, had bought and sold land in the area for many years, and that he was very well informed about building laws and council regulations. Satisfied by this, Joyce signed a contract of sale to buy the house for $500,000. No mention of her requirements for a permit to build four townhouses was made in the written contract. The contract did however contain a clause that said:

Entire Contracts Clause: The written contract contains the entire agreement between the parties. Any other statements made by agents or employees of the company or included in advertising material are of no effect unless they are included in this written agreement.

After discussions with the local council, Joyce has now learned that the council will only grant a permit to build two townhouses instead of the four she had planned.

Joyce approaches you for advice in relation to the above matter. She has had the house valued and discovered it is now estimated to be worth only $450,000. She has also discovered that land in the area satisfying council requirements for four townhouses is difficult to find and would cost at least $750,000.

1. Advise Joyce of her contractual rights against Star Properties Ltd in relation to the purchase of the house. Your response should comprehensively discuss all of the contractual principles involved including an estimate of damages. Support your answer with reference to at least two (2) court cases.
2. Discuss the application of the Australian Consumer Law to this situation. Are there any other non-contractual remedies available to Joyce in this situation?