Irvine v Irvine

Irvine v Irvine was a dispute between an elderly woman and her nephew and his sons, concerning the sale of the woman's home and the alleged promise made by the nephew and his sons to allow her to remain in the property for the rest of her life. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether there was a contract between the parties, and if so, whether it was unjust and therefore void under section 7 of the Contracts Review Act 1980. Additionally, the court had to consider whether the transaction amounted to unconscionable dealing or was a clearly improvident transaction, particularly given the woman's age and the special disadvantage she was in at the time of the agreement.

The court began by examining the evidence regarding the oral promise made by the nephew and his sons. It was found that there was indeed an oral promise, which was considered part of the agreement. The court then turned to the issue of whether the contract was unjust. It was noted that the transaction was clearly improvident, given the substantial disparity between the purchase price and the property's value. The court also recognised the woman's position of special disadvantage, due to her age and the close familial relationship with the purchaser. Consequently, the court concluded that the contract was unjust and void under the Contracts Review Act 1980. Furthermore, the court found that the transaction also amounted to unconscionable dealing, reinforcing its decision.

In conclusion, the Supreme Court of New South Wales found that the contract between the parties was unjust and void. The court also determined that the transaction constituted unconscionable dealing. As a result, the court ordered that the sale of the property be set aside, and that the woman be allowed to remain in the property for the rest of her life, as per the oral promise made by the nephew and his sons.