This is due to the fact that he was not authorised to be promoting investments in real estate, nonetheless, Edvard and Frida are able to take legal action. Even though Pablo’s parents English is competent and are unable to understand complex matters to of taken any reasonable care when necessary, it does not asolve Merlin and the BNQ from responsibility. This is due to the fact that a duty of care is owed to Edvard and Frida by Merlin and BNQ as they came to the financial institution with the intention of receiving assistance with investment. (Commercial Bank of Australia Ltd v Amadio [1983] HCA14)

Edvard and Frida are also able to take legal action against BNQ as they were deliberately inactive towards them which is a breach of their duty as BNQ clients. It is stated under section 2(2) of the ACL that engaging in conduct is a reference to doing or refusing to do any act. This is evidently a breach of duty as Edvard and Frida were trying to get into contact with Merlin but he was deliberately inactive. Furthermore, the family contacted BNQ but was told they had no interest in them. It is the financial institutions duty of care to respect their clients and this was evidently breached through their deliberate inactivity.

The estate agents are also held liable as they exploited the special disadvantage of Edvard and Frida’s language capability. As stated under section 21 (2) (c) of the ACL, whether the consumer was able to understand any documents relating to the supply or possible supply of the goods or services. The estate agents owed a duty of care to Edvard and Frida to explain the income of possible applicants that may come through to their potential investment properties. As Merlin falsely claimed that the properties are fully let to students during the year and visitors during the summer periods, Pablo’s parent’s were not receiving income, hence their need to take legal action.

Therefore, it is unmistakably evident that Edvard and Frida, the parents of Pablo, were owed a duty of care by Merlin, BNQ and the estate agents. Nonetheless, the parties are held liable as they breached section 18 of ACL.