Leung was in serious financial difficulties . She owed $ 150 000 to Desert Rose Inc. , in respect of a business venture . She also owed $ 100 000 to Kwan . She entered into an agreement with Kwan whereby she sold her house to Kwan for $ 500 000 , which was approximately its fair market value . The debt of $ 100 000 was set off against the purchase price , and it was further agreed that Kwan would lease the house back to Leung for a period of two years at a rent of $ 30 000 a year . That sum of $ 60 000 was also set against the purchase price . The balance of $ 340 000 was paid on completion of the transfer and was mostly used by Leung to pay off debts to her other creditors . When Desert Rose sought to collect the debt owed to it Leung was unable to pay . Does Desert Rose have grounds for impugning the transaction between leung and kwan ?