ALL EVENTS TAKE PLACE IN NSW AND CONCERN NSW LAW Wolfgang and Alain are celebrity chefs. They opened their restaurant called "Alsace Lorraine" at Circular Quay on 29 December 2009. In their first year they received the coveted Three Hats from the Sydney Morning Herald's Good Food Guide and won the 2010 Restaurant of the Year Award. The building, land and goodwill of the restaurant ( together, the business) are jointly owned by Wolfgang and Alain. In October 2011, Alain arranged for the business to be valued for insurance purposes. The business was valued at over $4M. Unfortunately Wolfgang has a truffle addiction and finds himself in a great deal of debt. In early 2012 Wolfgang is approached by the chef of a rival restaurant, Marco from "The Cabanossi Cabana". Marco tells Wolfgang he wants to buy Wolfgang's share in the Alsace-Lorraine. Wolfgang emails Marco stating that he owns the restaurant outright and is prepared to sell it for $2M and for that sum of money, he and Alain will also sell the land and building where they operate the Alsace-Lorraine, if the sale can be done quickly. Marco discusses the purchase with his business partner Paulo by email. Paulo advises Marco that he does not want to be involved in the purchase as there is insufficient time to conduct due diligence. Marco tells Wolfgang he will proceed with the purchase. Wolfgang instructs a solicitor to draft the two contracts; first, the Contract for the Sale of Land (which includes the building) with his name and Alain's as Vendors; and second, the Contract for the Sale of Business with Wolfgang as Vendor. Wolfgang forges Alain's signature on the Contract for the Sale of Land. Before settlement, Wolfgang forges Alain's name on a Transfer of Business Name and becomes the sole registered owner of the business name "Alsace-Lorraine". At settlement on 10 April 2012, Marco paid the purchase price with a Bank Cheque drawn on his personal bank account. On 10 April 2012 Marco is registered as the owner of the land where the Alsace-Lorraine conducts business and the owner of the business name "Alsace-Lorraine". Marco is the sole owner of the building, land and goodwill of the restaurant. Alain is furious at Wolfgang's betrayal. On 20 April 2012 Alain commences proceedings in the Equity Division of the Supreme Court of New South Wales against Wolfgang and Marco seeking among other relief claimed; to set aside the sale of land and recover equitable damages for the oss of the business. Wolfgang filed his Defence within 20 days of service of the Statement of Claim. Marco filed his Defence within 28 days of the service of the Statement of Claim. e Michael Legg This study source was downloaded by 100000830125326 from CourseHero.com on 07-21-2022 00:48:53 GMT -95:00 Page 2 of 3 Milps:/www.counthero.com/file/48032690/2017-red-exampdip