LEGL1001 : Antonio Case Study - Understand Complex Transactions - Law Assignment Help

Assignment Task :

QUESTION:

António was interested in buying a photography studio from David. António suffered from a mild intellectual disability and did not understand complex transactions. 

António’s first language is Portuguese and although he could understand English he was unable to read it very well. David did not know António very well but he was aware of his disabilities because he had been a regular attendee at his photography classes. 

David’s partner had recently received a promotion involving a transfer to Japan and was keen to sell his Australian business quickly. He told António that the business had “lots of potential” and “if António worked hard he could make a lot of money”.

David showed António the financial statements for the business for the past 5 years. António did not understand the accounts but was too embarrassed to ask for any explanation. The statements showed that the business had never made a profit.

David told António that others had shown interest in purchasing the business so he would need to act quickly. António signed the contract before obtaining any legal advice.

The legal issue to be resolved:

Can António successfully argue that the contract can be set aside on the grounds of unconscionable conduct and/or undue influence?

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