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5 Pages • Essays / Projects • Year: Pre-2021
This assignment is in regard to 2014 sem 1 TABL 1710 course. Vicky is the owner of farmland. She has lodged an application for subdivision with the local council. Tom, who works on the farm, is interested in purchasing that part of Vicky’s land which is next to the river because he likes the outlook of the property. Tom asked Vicky if she would sell the land to him and Vicky said she could not sell the land until the approval of the subdivision was given but in the meantime, she was happy to let Tom “camp” on that part of the land which is next to the river. Vicky and Tom intended that a formal contract of sale would be prepared by Vicky’s solicitor upon approval of the subdivision and payment of a 10% deposit by Tom. Tom asked Vicky if she could confirm the intended sale price of the land. Before Tom started camping on the land, Vicky’s husband, Simon, gave Tom a letter which set out the sale price (including the 10% deposit) of the land. Simon signed the document but Vicky did not as she was collecting the children from school when Tom called over to the farmhouse to collect the letter. A week after Tom signed the letter, he proceeded to build a shed on the land and to have electricity brought to the shed and he also installed a water tank. Vicky knew of Tom’s building works as the trucks drove past her house on the way to Tom’s “camp” and she had asked Tom to make sure that the trucks delivering the materials to the site drove carefully past the house as she was concerned the children could be run over when playing outside the house. The application for the subdivision was refused and Vicky served Tom with a notice to vacate the property. Tom argued that Vicky’s notice was invalid as a binding contract for the sale of the land existed between the parties. He also argued that in the alternative, Vicky was estopped from denying him the right to buy the land beside the river.
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