Marcelo was an orphan adopted by Mr and Mrs Hill (both 55 at the time they adopted him). The Hills were a very wealthy couple who loved helping others. They felt lonely, as their two grown up children, Lucile and Adam, stop visiting them (unless to ask them for money). Mr and Mrs Hill decided to change the life of a poor child and adopted Marcelo when he was 8. Lucile and Adam (30 and 28 at that time) never liked Marcelo.

On Marcelo's 17th birthday, he and his parents were heading to their beach house to celebrate. Unfortunately, there was an accident and Mr and Mrs Hill tragically passed away. Marcelo was unharmed. When Lucile and Adam arrived at the hospital, the first thing they asked Marcelo was if he knew anything about their parents will. As it goes, that very morning the Hills had told Marcelo that, as a birthday present -and because he had been so grateful and lovingthey had made him the sole beneficiary of their substantial estate (knowing that Lucile and Adam had been given enough economic support in their lives to create an estate of their own). Since Marcelo was underage, his sister Lucile would be the sole trustee until Marcelo turned 18. The properties in the estate included the big house they were living at in Maribyrnong, a penthouse in the city (leased by Mr Wicks), a coastline beach house in the Mornington Peninsula and a B&B in Sorrento, among other smaller properties.

When Marcelo told his siblings what his parents had told him that morning, Lucile was shocked and yelled at Marcelo: 'you are a filthy rat! You took advantage of them [their parents]. I'll make sure you don't touch a single dollar of that money, ever!'. Adam, who had been working in a law firm in the last 2 years, calmed Lucile down and they set up a meeting time with Marcelo to discuss things formally the following week.

At the meeting with them (Adam and Lucile), Lucile explained Marcelo that, as the sole trustee, she would be managing the properties and finances until he was 'old enough'. Marcelo could still live at the Maribyrnong house; he would receive a monthly stipend to pay for his school and living expenses, and he would be the beneficiary of the monthly rent from Mr Wicks.

A year later, Mr Wicks stopped paying the rent; so, Marcelo requested a meeting with Lucile. Adam attended the meeting too. In this meeting Lucile and Adam explained to Marcelo that he did not have to 'worry about anything'. They would take care of his monthly stipend and Lucile would still be managing the estate until Marcelo was 21, considering that at 18 years of age he was still very young to understand these matters. They also mentioned that, as he was about to start Uni, they would not like the management of the estate distracting him from his studies. Marcelo didn't know what to think. He was processing what he was told,when Adam and Lucile handed him a document and asked him to sign. Both of his siblings standing right before him. When Marcelo asked what it was, he was told that it was a contract stating all what he had been just told, including the increase in his monthly stipend AND the assurance of payment of future university fees until graduation. Marcelo was unsure about the content of the document but felt a relief knowing that his university fees were covered. He said nothing and signed.

What Marcelo did not realise was that the document he signed, was a contract in which he stated that Lucile had wide liberty to manage the properties and finances as she saw fit, and that Marcelo could not interfere or ask any questions until he turned 21.

In the following 2 years, Lucile and Adam were managing carelessly the finances of the estate. They made poor financing decisions which led to financial debt. In order to fix this, they sold the B&B in Sorrento, paid their debts and bought a BMW each. Marcelo had no idea about all this.

Last month, Marcelo (now 20 and in the final year of his bachelor -who had not heard from his siblings in a while), was asked to attend Adam's office. In that meeting Marcelo was informed that all of the management of the properties and the work that Lucile had executed as a trustee, had left her with little time to care for her own career and businesses, impacting her personal life and income; so, it was her 'right' to get something in return for the time and effort she had invested in the management of the trust. Adam suggested that a 'fair' deal, considering 'all these years of payless work', would be for Lucile to take the title of the Mornington Peninsula house to herself (worth approximately $3 million). This communication got Marcelo completely out of guard, so he asked for some time to get legal advice. Adam intervened and said to him (in the nicest possible way): ''I' am your legal advice. This is why we called you to my office. What we are advising here is, not only legal, but fair. You must remember you had nothing before our parents adopted you. We have been very kind to keep you in the family and pay for your education. Think about Lucile too, all the effort she's invested in administering all this. All for you! You wouldn't like to lose your tuition and monthly stipend now that you are about to finish Uni, would you?'.

Marcelo, feeling very distress about the fact that his dream of becoming a doctor could be jeopardised, signed the consent for the transfer of title of the Mornington Peninsula House to Lucile. He left the office very confused and met with his university counsellor, Martha, who had provided psychological support to Marcelo for months. When Marcelo told Martha what had just happened, she was alarmed and recommended Marcelo to seek legal advice.

Marcelo comes to you for advice and your recommendation is to take immediate legal action against Lucile.

QUESTION:

1. What cause of action could Marcelo take against Lucile to set aside the contracts?

a. The contract that gave Lucile liberty to manage the estate until he turned 21.

b. The contract giving Lucile the title of the Mornington Peninsula Beach House