Question
Question 5 (twenty marks ): (a)10 marks: Contract law and Tort law Vincent is 40 years old. He is a successful and famous portrait and
Question 5 (twenty marks):
(a)10 marks: Contract law and Tort law
Vincent is 40 years old. He is a successful and famous portrait and landscape painter . Vincent's paintings usually sell for hundreds of thousands of dollars. Vincent owns his own home a beautiful cottage in Leura ,Blue Mountains and several vintage cars as well as $10,000 in term deposits.
Vincent has to date led a nomadic life indulging in his love to travel and paint with his wife Picassa .
Vincent and his wife recently decided to start a family. He has just sold a painting which fetched $200,000and has decided to invest the $100,000 in an investment portfolio that will fund his children's education .
Vincent is a customer/shareholder of ARZ Limited. He sees a sign at his local branch of ARZ Limited offering free investment advice. Vincent has asked his wife Picassa to make an appointment with Jobbie an employee of ARZ Limited. Jobbie informs Picassa that investing is risky. "The higher the risk the higher the return".
Jobbie advises Picassa the highest return she and Vincent can get is from investing in a cutting edge digital currency venture start-up-DDD-a Malaysian syndicate . Jobbie also informsPicassa thatthe Reserve Bank of Australia is one of DDD's client ie RBA has contracted with DDD to print cheap Aussie currency. Theinvestment will net a return of 18% per annum (coincidentally the promoters of this investment pay ARZ Limited the highest rate of commission). Jobbie does not disclose that the ARZ Ltd and their financial planners will each earn each $5,000 commission if Vincent invests his money in DDD.)
Within six months of making these investments Vincent has lost the entire $200,000 after the Malaysian government raided DDD premises and shut down its operationsafter a tip-off for foreign currency forgery and corruption.
Answer the following questions:
Does Vincent and Picassa have a simple contract with the bank? (one mark)
Upon what legal cause of action could Vincent and /or Picassa sue? ( two marks)
Outline the grounds or elements of such a legal cause of action (five marks)
Does the bank have any defences ( two marks)
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