Morel Pty Ltd builds and sells houses around golf courses in Melbourne. Morel's latest development The Grange is advertised as follows in a brochure: "From your home at The Grange you'll watch kangaroos hop along fairways and waterbirds land on the lakes. And if you ever sell, you'll be a property millionaire - that's our promise. So why not buy now for under $600,000?" The advertisement also includes short a disclaimer which reads: We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective purchasers should make their own inquiries to verify the information contained herein. All property prices advertised are current at the time of issue but may change at any time and are subject to availability. Sharon asks Geoffrey (an agent of Morel) as to whether there would be any future developments in the area, to which he replies, "I think they are turning an old farm a few kilometres from here into a golf course." Excited by the investment potential, Sharon buys a $550,000 house at The Grange from Morel in October 2021. Upon purchase of the property, Geoffrey gives the same brochure to Sharon and tells her "Don't forget to give the brochure to your other friends who are interested in buying a property!" In June 2022 there is a severe recession (downturn) in the property market. Fearing the house's value will drop. Sharon quickly sells the property to Alex for $550,000. Alex was convinced to buy the property because Sharon gave the same brochure provided by Morel. When Alex moves into the house, he discovers there are no kangaroos or waterbirds to watch because of the fertilisers used on the newly built golf course built 2 kilometres away from the house. Worse, in October 2022 Alex loses his job because of the recession and must sell the house for $450,000. Alex accused Morel Pty Ltd for neglecting to include in the advertisements regarding the construction of the golf course near the Grange. When Morel Pty Ltd was confronted, they released a press statement: "Morel Pty Ltd strongly refutes any allegations of negligence or fraudulente. We have given the most accurate advice at the time the advertisements were created. Furthermore, as stated in the disclaimer, customers are expected to do their own research and speak to experts about any future land developments before deciding to purchase a property." Advise Morel Pty Ltd by referencing to statute and/or a minimum of 4 relevant cases: a. Whether a duty of care is owed to Sharon. (4 marks) b. Whether a duty of care is owed to Alex. (5 marks) 9 marks (4 + 5)
