In respect of the scenario write a 400 word response that addresses the following: (include references)

a) The legal issue (or issues) in the transaction

b) The legal principles you will use to resolve each issue

c) The application of those legal principles to the facts of each issue

d) The concluding advice you would give in respect of each issue

Problem scenario

Mrs Acton is a well-off retired widow. On her daughter's request, she agrees verbally to help her son-in law Jake establish his new automotive repair shop. Her daughter asks for $20,000 for the purchase and lease of important equipment for the business, including an air compressor, engine hoist and air conditioning machine. No terms are ever discussed. She deposits $20,000 into the business account. The business does well but, two years later, her daughter and Jake separate. Mrs Acton is very upset and blames Jake for the breakdown of her daughter's marriage. At one point, she calls Jake on the telephone to abuse him and adds: '... and you can pay back the $20,000 you owe me immediately. No ifs or buts, you bogan!' Jake seeks your advice about whether he could be contractually bound to return the money.