Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help using the IRAC method Question 2: Two brothers, Steve and Allan, both builders, discussed at home at night about building 8 townhouses. Steve

Please help using the IRAC method

Question 2: Two brothers, Steve and Allan, both builders, discussed at home at night about building 8 townhouses. Steve said, "I'll borrow the money to buy the land with the security of my house. We will use the land we purchase as security to borrow money to pay for the construction build and materials." There were lots of discussions between the brothers regarding the purchase for the construction project and it was agreed the profit would be divided 50/50. Steve borrowed the money from his bank and Allan purchased a block of land at Maroubra. They constructed 8 town houses but due to Covid and the banks putting interest rates up, the development did not make a profit and only covered the cost of construction but not the money Steve had borrowed from the bank. Advise Steve whether he can recover half the money he has the bank from his brother. Chatbot's answer: These facts are similar to the case of LICHAA v LICHAA NSWSC 2010. In LICHAA v LICHAA, the court found in favour of the family member who was seeking reimbursement of money borrowed separately from the development, and ordered the reimbursement as claimed. Applying the legal principles of the case of LICHAA v LICHAA, Steve can recover half the money owed to the bank.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

More Books

Students also viewed these Law questions