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Bridgewater V Leahy [1998] Hca 66

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Legal Issues Question One- (319 words) The contract at the centre of Bridgewater v Leahy [1998] HCA 66 is a deed of forgiveness of debt, in relation to the transfer of land. The parties to this contract were Neil York, who bought the interest in the land, and Bill York who sold the interest, and forgave the debt. The contract was entered into on 19th July 1988, with the terms being that Bill would transfer his interests in the Wonga Park fee simple, the Wonga Park perpetual lease selection, and the Risby land to Neil York. It was agreed that this would be for the consideration of $150 000 and the remaining $546 811 would be set aside in a deed of forgiveness. The Wonga Park fee simple was partly owned by Sam York, who agreed to …show more content…

The majority set forth their interpretation of unconscionable conduct to include the concept of the stronger party exploiting another parties special disadvantage vis-à-vis another, and that this principle should be distinguished from undue influence. Through evidence it was concluded that Bill had a strong attachment to Neil, treated him favourably and considered him the son he never had. The majority concluded that this amounted to a special disadvantage of emotional dependence, as established in the case Louth v Diprose. The majority dismissed previous judgements in the case that had ruled Bill was physically and mentally able to enter into a contract, which was a concern due to his age and frailty. The majority considered that their focus on age as a disability over looked the more pressing issue of emotional dependence. With Bill’s special disadvantage established the majority judges then examined Neil’s knowledge and exploitation of the disadvantage. Through cross examination listed in paragraph it was acknowledged that Neil was aware of Bill’s affection for him. It was also established that Neil was aware that the properties acquired in 1988 and those available under the option in the will were being received at good value for him. Bill York’s wish was that his properties would be kept under single experienced management, and this was found to be a major concern for Bill This can be seen as the catalyst for

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