Lindy - Josh - Case Study

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Assignment Task:

Assessment Description:
This assessment will be assessed according to the following criteria: quality of the statement of the legal issue(s) (10%) and rules/legal principles (30%); correct and thorough analysis and application of the rules and legal principles to the legal issue(s) (40%); well-thought-out conclusion (10%), and quality of the language usage and observance of proper structure, format, and instructions (10%).

Task A:

Lindy, together with her 17-year old son Josh, decided to move into the house of her sickly 79-year old father Bob in order to take care of him. The move, however, has not been easy for Lindy and her son. Bob is cantankerous and demanding. After being with her Dad for only seven months and feeling that she could no longer deal with the “oppressive” situation in the house, she decided to leave and so informed her Dad. Her widower Dad begged her and Josh to stay. He promised to complain less and behave better. He also promised that if she continued to live with him and take care of him for the next six months, he would give her $12,000 and his $25,000-camper caravan. Lindy said that she would think about it and discuss the issue with her son Josh.

After Josh came home from his apprenticeship work, Lindy explained to him what had transpired in her discussion with her Dad. Josh said, “Mom, take the money and the caravan! How bad could it be to stay on for another six months? But Mom, make sure that Grandpa writes you a note or something about his promise so he doesn’t forget or deny it later.”

The following day, Lindy told her Dad that she would continue to stay with him and take care of him. But in return, she wanted assurances from her Dad that he would, in fact, give her in six months the amount of $12,000 – money that, she said, she badly needed – and the camper caravan. Upon her prompting, her Dad wrote an informal promissory note on a piece of paper which he signed and gave to Lindy. That evening, Lindy showed Josh the promissory note signed by her Dad.

Task B:

Josh had his own plans for the money. He told his Mom about his plan to buy a ute to replace his beat-up sedan and for his use as an apprentice plumber. His Mom agreed. The next day, Josh visited a used car dealership to ask about an $18,000-ute that was displayed prominently and which he saw every time he drove off to work. Josh explained to Tom, the car dealership salesman, that he could pay a deposit of $3,000 and make monthly payments of $500 each month for the next six months. At the end of six months, he would pay cash of $12,000. Tom agreed. He checked Josh’s Driver’s Licence, which showed that Josh was 17 years old but would turn 18 in six months. After signing a Sales Contract, Josh excitedly left with the ute.

After seven months, Lindy approached her Dad about the $12,000 that he promised. Her Dad said that he could no longer give her $12,000 as he realized that he needed it more for his own needs. Instead, her Dad offered to give her $10,000 in cash, which he then handed over to his daughter. Her Dad also told Lindy that he could no longer give her the camper caravan as he was planning to sell it. Lindy was enraged! She grudgingly accepted the money, however, and told her Dad that he should give her the full amount and the camper caravan that he promised.

When Josh came home, Lindy told him what happened and showed him the $10,000 which she received from her Dad. Josh asked if he could have the money as he needed it to pay for the ute. He said that the car dealership salesman was also calling him almost every day about the overdue amount. His Mom agreed and gave him the $10,000 in cash.

Josh, who by now is 18 years old, was at the car dealership the following morning. He asked Tom, the car dealership salesman if he was willing to accept the lesser amount of $10,000. Josh explained that $10,000 was better than nothing since the car dealership would be unable to enforce his Sales Contract given that he was a minor at the time he signed it. Tom agreed.

Provide legal advice as to the following:

  1. Whether there was a valid contract between Lindy and her Dad over the promise of $12,000 and a camper van in exchange for Lindy continuing to stay with her Dad for six months;
  2. Whether the Sales Contract between Josh (when he was 17 years old) and the car dealership is valid.
  3. Whether the agreement between Josh and the car dealership to reduce the debt of $12,000 to $10,000 is valid.  

 

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