An Agricultural Research hopes to develop a medicine to prevent viruses from being transmitted from humans to cows. To assist their research, they want to conduct research on some cows and other livestock.

Dave and John are cows farmers in Maylands. Due to recent virus transmission, stock prices have fallen Dave and John are wondering what they should do with their land and cows. They decide to lease to the Agricultural Research one acre of land for five years. This land would be used to house the cows on which the new medicine is being tested.

Dave and John agree to sign a contract prepared by the Agricultural Research lawyers. The contract gives the Agricultural Research exclusive use of the one designated acres of land. In turn, the Agricultural Research promises to use the land only for agricultural research purposes, and not for profit-making. The Agricultural Research will pay $1 per year to Dave and John for the right to use the land over the five years. The Agricultural Research will also acknowledge Dave and John by naming any successful medicine after them.

One year into the contract, prices for meat have risen dramatically. Dave and John would like to end the contract and take their land back. They believe there was not really a contract between themselves and the Research since the rent was only $1 per year, which indicates a simple friendly arrangement rather than a binding contract.

Dave and John seek your advice as to whether they can claim there was no contract? In your answer, please refer to relevant case law and/or legislation.