IRAC Case Study

IRAC

IRAC is an acronym that stands for:

• Issue
• Rule
• Application
• Conclusion

It functions as a methodology for legal analysis and is used as a framework for organising your answer to a case study in law

State the legal issue(s) to be discussed. This should be one(1) or two (2) sentences stating the legal issue in the case study

State the relevant statutes and case law. This is where you state the legal rule or principle relevant to the issue(s). You also state the relevant cases and the precedents of the case(s)

Apply the relevant legal rules to the facts that created the issue

State the most likely conclusions using the logic of the application section. Don’t forget to include any alternative outcomes created by ambiguities in the relevant facts and rules

Mrs Charlotte Greedy is a wealthy lady, in her mid-80’s, living alone in Melbourne. She is increasingly lonely and wants a companion to live with her, and assist where possible, play cards with her, watch television, and take her to the movies and shopping.

Charlotte writes to her niece, Rosie, who lives in Spain, and has a well-paid job in a bank, with the promise of earning a very good income in the next few years.

Charlotte and Rosie exchange many phone conversations and after 3 months, Rosie quits her job in Spain, sells her possessions , particularly her flat, at a loss, and spends $15,000 of her own money, moving to Melbourne , in order to look after her aunt.

Charlotte has promised to allow Rosie to live in her house rent free, with all food and utilities paid for, and provide her with an allowance of $800 cash per week. Rosie can also drive her aunt’s Jaguar car, and Charlotte has also promised to buy her new clothes twice a year.

Charlotte has promised to change her Will, and has told Rosie that she will leave all her assets and property to Rosie upon her death.

Unfortunately, after 6 months of moving into her Aunt’s house, Rosie and her Aunt have a big argument, and Charlotte orders Rosie to leave the house, get out of her life, and tells her that “you are on your own now, and you will not get one cent from me when I die, as I am changing my Will to exclude you

You are Rosie’s lawyer.

Advise Rosie what legal actions should could take to sue her Aunt and obtain what she was promised.

Mary decided to sell her car, and on Monday 1st May, she tells her friend Joanne:

“Do you want to buy my car for $15,000? Take a few days to think about it. I need to know by the end of the week

On Tuesday 2nd May, Joanne telephones Mary and says:

“I can’t afford $15,000 at the moment, all I can afford to pay is $14,500. Will you take this for it?

On 3rd May, Mary sells her car to Michael.

On the 4th May, Joanne calls Mary back and tells her:

“My mum has lent me $500, and now I have the full $15,000, and would like to buy the car for the price you asked for on Monday.

Mary responds and tells Joanne:

“Sorry, I sold the car to someone yesterday.

Tom is a student at Victoria University who loves sports cars. He owns a number of sports cars and is interested in buying more.

He goes to visit his friend Peter who is a law student at Victoria University. Tom discovers that Peter has a very old Mercedes Benz sports car which has been in the family for many years. It hasn’t been driven for a long time and requires some repairs. Peter offers to sell the car to Tom for $300. Tom thinks this is a very good offer and accepts Peter’s offer. Peter also seems pleased with the deal. Tom pays Peter the money and arranges to pick up the car the next day.

Soon after, Peter finds out that the car is worth a lot more than $300 as it is a very rare car. He realises he has made a mistake and would like to sell the car for more money. The next day, Peter refuses to hand over the car to Tom. Peter says that he would like to withdraw his offer and also argues that their agreement is void due to insufficient consideration.

Advise Tom as to whether:

(a) Peter can withdraw his offer?

(b) Their contract is void due to insufficient consideration?