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Intention, Consideration &

Capacity

                                     (Based on Thomson Reuters)

 

 

 

Question 1

 

Judy runs an antique jewellery store. One evening a hooded man stormed into her store and robbed $100,000 from the register. One month later, Judy decides to run a stocktake sale from 5pm to midnight, but is still afraid of being robbed. She asks a police officer she knows, Peter, if he will attend her store while the stocktake sale is on and provide her with personal protection from any potential robbers. She offers to pay him $1000 for his effort. Peter agrees, even though it is normally his night off duty. During the duration of the sale, Peter stays by Judy's side and protects her. The next day, Peter attends the store to collect his payment and Judy refuses to pay him for "doing his duty".


Can Peter sue Judy to enforce their verbal agreement?


Question 2


Monica, a 19-year old Accounting & Finance student at UWA, has spent her whole life living with her parents but has decided that she wants to become more independent. She decides to move out with her friend, Rachel, to an apartment.


Since they were struggling for cash and had hardly any possessions to take to the new apartment, Monica's brother, Ross (who also Rachel's boyfriend), purchases a couch for Rachel and Monica. The couch costs $1000 and is delivered to their apartment. After it is delivered, Monica rings up Ross to thank him for the kind gift, and says, "I will take Ben (Ross' son) to Adventure World next weekend to say thanks!". Ross then says, "if you are still struggling. How about you come over sometime and help me with chores for two hours and I will buy you a brand new, top of the line fridge in exchange?", Monica says "yes, that's perfect!" On the same day Monica helps Ross clean the house for two hours. Later that day, Ross and Monica get into a fight because Monica makes a comment about Ross haven taken a ""break" from his relationship with Rachel (a touchy subject to Ross). As a result, Ross refuses to buy her a fridge. In retaliation, Monica then refuses to take Ben to Adventure World the following weekend.


Advise Monica & Ross as to whether they can enforce their respective agreements.

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