RELIANCE LAWYERS
TO: Client
FROM: Christine Bulos
SUBJECT: Sandy V Mark
DATE: 17th April 2017
CC: Partners@reliancelawyers.com.au
PURPOSE:
This memorandum analyses the contractual dealings between our client, Sandy, and Mark to determine whether equitable and proprietary estoppel is applicable in this case, and whether the promise Mark made to Sandy in regards to subdividing his land must be upheld.
SUMMARY:
QUESTION 1A) It will be argued that estoppel is definitely applicable in this case as no contract was formally created by the two parties due to the lack of a formal written agreement , the intention to create legal relations and the absence of sufficient consideration therefore what was communicated between the two parties is
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In order for detriment to have occurred, the relying party must suffer detriment if the assumption made by it is not fulfilled. As the assumption made between the two parties was indeed unsatisfied due to Mark’s change of mind, Sandy was thus left at a substantial loss. A clear link is formed between the detriment suffered and the assumption and expectation as provided in the case of Thompson v Palmer (1933) whereby was stated that the relying party must suffer detriment in the sense that ‘as a result of adopting (the assumption or expectation) as the basis of action or inaction, (the relying party) will have placed himself in a position of material disadvantage if departure from the assumption is permitted.’ Therefore the relying party is found to be worse off and rather the act of going back on the promise would ‘result in some detriment and therefore some injustice. ’ The detriment suffered must be material, significant or substantial and in this case, it fulfills all three criteria as Sandy loses the material gain of the cottage and the substantial improvements made which can also be considered a substantial and significant loss monetary wise, and significant in the sense that she is unable to seek a property settlement with her ex-husband Pat any …show more content…
Factors present that support this notion are the lack of a formal written agreement, the intention to create legal relations wasn’t present, and insufficient consideration.
Mark had promised to subdivide his land and transfer the ownership of the cottage you were living in as a tenant to your name, and in effect encouraged you to disregard seeking a settlement with Pat as well as substantially improve his cottage. This thus encouraged an induced assumption to be made which you relied upon. Mark did not do enough to prevent your impending detriment from occurring regardless of his initial knowledge and intention made. We will therefore use these factors to our advantage and base the cause of action and arguments made on these.
As your lawyer, my main concern is to seek relief in the form of obtaining the cottage property for you rather than monetary damages as that has been established to be of your main concern as substantial improvements were made to the cottage using your own money as well as it being the initial agreement between Mark and
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