Contract Law

1. M owns a 20 acre residential property and lives there with his wife Mrs. M. When S and her husband, P come to live on the property in a comfortable cottage, they come as tenants. S at that material time, is married to P, who happens to be the younger brother of Mrs. M. For about 3 years all is well as S and P continue to live on as tenants in the cottage.

Things start to change when M and S become emotionally involved. M promises S that as he loves her, he would look after her by subdividing the property that he owns and give S the cottage that she lives in. P finds out that M and S are in a relationship and decided to move out of the cottage and petition for divorce. During the course of the divorce proceedings, M once again declares he loves S and dissuades her from seeking a property settlement with P, in relation to another property outside M’s property which P owns. S is so persuaded by M’s declarations of love and advice and a repetition of the promise that M will subdivide the 20 acre property, transferring the cottage to S’s ownership. S believes M and drops any notions of seeking a property settlement from P.

After her divorce, S continues to live in the cottage as a tenant and makes substantial improvements to it, with the knowledge of M, using her own money. She does so in the genuine belief that the cottage will become hers. Another three years go by and one day, S approaches M about the division of the property and the transfer of the ownership of the cottage to her. M tells her that he has changed his mind, and will not subdivide the property and transfer the ownership of the cottage to S after all. S comes to you for legal advice.

You are to consider the following:
a)If S is to sue M for the subdivision of the property and transfer of ownership of the cottage from M to herself, what is the cause of action that you should advise her to base her legal action against M on?
b)How would you frame the issues that need to be tried in relation to matters stated in the preceding paragraph ?
c)What factors would you advance in argument in support of S’s claim?
d)What is the cause of action you would argue that S has against M?
f)Further to (d) above, what is the relief that you would urge the Court to be appropriate that should be awarded to S?
You are expected to back up your answers with an elucidation of the appropriate legal principles and the relevant case law. This answer requires an exposition of contract law. No aspect of matrimonial division of assets needs to be considered.