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Dave was a bachelor who lived in Sydney. He was a loner and in ill...
 Dave was a bachelor who lived in Sydney. He was a loner and in ill health. He contacted his sister, Keren, in Colombo, Sri Lanka and asked
her to move to Sydney to help look after him. He promised that if she did, that he'd leave all his property to her on his death. Keren agreed.
She resigned from her job, sold her house and moved away from her friends. She arrived in Sydney and began to care for her brother. A
few months later they had a falling out. Dave sold his property and disinherited his sister. His sister sued for breach of contract. Advise
Keren and cite an example of relevant contract case law. (11 Marks)
2) Ali Khan goes to the pub after work on Friday evening, after a long, liquid lunch. He drinks alcohol for another couple of hours by which
time he is quite drunk. His workmate, Muhammad, does not drink alcohol, but has had orange juice instead, and is quite sober. They have
been talking about Ali Khan's new entertainment system that cost him $20,000.00 that unfortunately Ali Khan is having enormous di culty
setting up. Muhammad says to Ali Khan that he'll buy it for $2,000.00 and Ali Khan agrees. Muhammad drives Ali Khan home in his van and
takes the home entertainment system.
The following day Ali Khan goes to Muhammad's place and tries to return the money and recover his entertainment system.
Advise Muhammad and cite a relevant contract case law. (6 marks) 
 
3) Gulliver went on an organised bus tour for his annual holidays. The length of the tour was 23 days. The rst 11 days were fantastic and
more than exceeded his expectations. However, on the twelfth day the bus crashed, trying to avoid a wombat waddling across the highway,
injuring Gulliver so he could not continue his tour on a replacement bus. Gulliver wants to sue the bus tour company for the full amount of
his tour cost.
Advise Gulliver and cite an example of relevant case law. (5 marks)

Social Science Law OPERATIONA BSB51918 섈 쉋

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Answer & Explanation Solved by veri ed expert 숨

I have explained the answer below.

Step-by-step explanation

1.
Domestic agreements such as the agreement with friends, agreement with wife, agreement with daughter, agreement with family
members, this type of contract, the court presume that there is an absence of an intention to create a legal relationship.
In the Balfour v Balfour case, the court held that agreement between husband and wife generally is not considered a contract
because the parties do not have the intention to create a legal relationship. To enforce the contract, it is very clear that the legal
intention must be there to enter into a contract.
Therefore, the contract between Dave and Keren is not considered a valid contract because the court will presume that there would
be no intention to create a legal relationship. 

2.
Intoxicate a ects a person's capacity to act that he cannot do actions that ordinary man can do easily, he cannot judge the
consequences of his actions, this is the reason the lawmakers hold a person liable if he consumed alcohol beyond the exceeding
limits and a person cannot enter into a contract if he is intoxicated because he has no contractual capacity at that time, all the
contract become void if any party is intoxicated at the time of entering the contract. 
In the case of Campbell v. Hooper, It was held that where a mortgagee sought a decree for repayment of debt and evidence
presented showed that the mortgagor was lunatic at time of contract and in addition to it mortgagee was not aware about it. It was
held that the mere fact of lunacy cannot make a contract invalid. If the other party had knowledge of it, it becomes voidable at the
option of the lunatic. 
Similarly, in the given scenario, Ali was intoxicated and Muhammad was aware of it that Ali was totally drunk. Therefore, the contract
between Ali and Mohammad was not a valid contract and voidable at the option of Ali. 

3.
 In the case of Hadley v Baxendale, the court must consider if the loss su ered by the party is a usual and reasonably direct
consequence of the breach. In short, the party could only claim for losses stemming from breach of contract where the loss was 숿
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reasonably viewed to have resulted naturally from the breach.

Similarly, Guliver will get compensation but not full because we can see that he had enjoyed eleven days of holidays. The part of
compensation was based on the fact that there had been a breach of express or implied term i.e. the enjoyment that can be derived
from a holiday. Therefore, Guliver is entitled to recover damages for the amount he paid to the rm but also damages for mental
distress. 

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Q: Dave was a bachelor who lived in Sydney. He was a loner and in ill...
A: I have explained the answer below. 1. Domestic agreements such as the ag...

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