Constitutional Socialist

information and knowledge
August 8, 2017
CASE 4 ANT100
August 8, 2017
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Constitutional Socialist

Constitutional SocialistThe special disadvantage may be constitutional, deriving from age, illness, poverty, inexperience or lack of education. Or it may be situational, deriving from particular features of a relationship between actors in the transaction such as emotional dependence of one on the other.To what extent does case law bear out what the Federal Court has said, as set out above?2.Rhonda is a rich and impressionable young woman of 21. Ever since her parents died when she was 17 she has relied on her solicitor-uncle to look after her financial affairs. He is the sole trustee of the estate left by her Rhondas parents and she is the sole beneficiary.When she attains 21 , her uncle tells her that the vast estate should continue to be placed in a trust and for her own good she should receive not more than $800 per month from it as her monthly living expenses. She is taken by her uncle to the offices of Davis who is introduced to her by her uncle as an independent solicitor who will from then on act as a co-trustee of the estate with him.Davis reads out a document to Rhonda entitled Terms of the Trust. He does not explain the contents at all. After Davis has finished reading it, Rhondas uncle asks her to sign the document on each page and on the space provided at the end of the document. When she hesitates, the uncle says sternly, All this is being done to protect you and the legacy that your parents left you. If you dont sign this, Ill never see you again!Not wishing to displease her uncle Rhonda signs the document. During the conversation between Rhonda and her uncle Davis merely looks on.Presently, Rhonda is 30 years old and married. She is older and a bit more worldly-wise. She has ascertained 2 months ago that her parents had in fact left her a vast fortune currently worth about $16 million. She has also learned that her uncle and Davis as trustees draw $75,000 each per annum as co-trustees of the estate as their annual fees Rhonda wishes to vary the terms of the trust and also to discharge the trustees. Advise her.You need to consider only the contractual principles. Knowledge of the Law of Trusts is not necessary.

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