Question
1.John is a developer who has previously bought land at a council auction. Under the council's contract for the purchase of land there is a
1.John is a developer who has previously bought land at a council auction. Under the council's contract for the purchase of land there is a clause that provides that no person who has purchased land from the council is eligible to bid for further land from the council in the next 5 years from the date of the purchase.In order to be eligible to bid at the next council auction, John forms a proprietary company limited by shares. In every respect, the company adheres to all the provisions of the Corporations Act. John and his wife are the sole shareholders of the company, and they are its sole directors. John attends the auction and successfully bids for a block of land. The council has refused to go through with the sale because John had bought a block of land before.
John brings an action for specific performance against the Council saying that it was not he who was the successful bidder, but the company.
Discuss the likelihood of success of this argument, assessing arguments that may be made by the council.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started