Assignment task:
Zander is a collector of rare and valuable stamps. He owns a set of 'Kookaburra' stamps from 1915 valued at $30,000 of which he is very proud. At a party he had too much alcohol to drink and told Spike another collector and dealer about his recent purchase. Spike offered to buy the Kookaburra stamps for $20,000. Zander is behind on a payment for his children's' school fees at an expensive private school so agrees to sell the stamps to Spike for $20,000 and organizes for Spike to collect and pay for them the next day. The next morning when Zander is sober he refuses to sell the stamps to Spike but Spike insists they have a binding contract.
Does Zander have to sell the stamps to Spike at $20,000?
Required: applied the IRAC method to answer the question and give detailed references.
Zander now seeks your advice
In providing advice, you must address the following particulars:
1. Identify any applicable issues e.g. capacity.
2. State relevant law in relation to issues identified including citation of at least one (1) relevant case. Students are also expected to apply the relevant case(s) to the factual situation in the given scenario and then reach a conclusion (and state that conclusion clearly and concisely).
3. What remedy/remedies, if applicable, are available to either party? Where applicable, summarize how the remedy/remedies would be applied with reference to applicable common law and statutory principles
The questions are as follows:
(1) Student has explained in their own words the test for capacity outlined by the High Court in the case of Wright v Gibbons as set out in paragraph 136.
(2) Student has outlined the arguments of both parties regarding the issue of whether Mrs Vaclav lacked the necessary capacity to complete the contract.
(3) Student has outlined in their own words (with reference to only paragraph 149 sub - paragraph 1) the details of the judgement of the court.