Solved: Factual Scenario-Harold Markle Case

Factual Scenario
Harold Markle is the registered owner of three freehold lots in South Brisbane (Lots A, B and C). All of the lots are situated within the same industrial complex under a large corrugated iron shed. Two of the lots are on the ground floor of the complex (Lots A and B), separated by a partition wall. A third lot (Lot C) is on the mezzanine level, accessed via an external staircase at the back of the complex. The mezzanine level overlooks both Lots A and B. All three of the lots draw on the same source of electricity. On 20 January 2019, Harold executed a written lease for a term of two years over Lot A in favour of Charlie’s Auto and Tyre Service. The lease was not registered but there is an option to renew for a period of two years exercisable at Charlie’s request, in writing, at least seven days before the expiry of the first term. Since 1 December 2020, Lot B has been occupied (exclusively) by Tony’s Key Cutting and Shoe Repairs. Mr Tony Baloney, the owner of the business, is Harold’s brother in law and neither Tony nor Harold bothered with any written documentation to give effect to their arrangement. Tony pays Harold $1,500 a fortnight for the occupation of Lot B. Lot C of the complex, on the mezzanine level, is not currently occupied, although since 1 January 2021, Harold has been in email discussions with Dr Claudia Clinton, an academic-turned entrepreneur, who runs her own data security company. Dr Clinton wants a two year lease of Lot C, at a weekly rent of $1,000. In an email dated 10 January 2021, Harold agrees to lease the lot to Claudia on this basis. On 12 January 2021, Claudia sends an email to Harold as follows: Hi Harold, thanks for confirming this. The only other thing outstanding, as far as I am concerned, is whether you will provide a back-up generator to the mezzanine level, in case the power to the complex fails. As you would appreciate, my data systems need electricity 24/7, otherwise I could lose my client’s data. Cheers, Claudia. Harold has not yet replied to Claudia’s email, although he has read it and doesn’t think there will be any problem with her request. The only question in his mind is who will pay for the generator. Task 1 – Memorandum (25 marks) 1400 words max (not including footnotes) Assume the date is 13 January 2021. You are a junior solicitor in a commercial law firm. Your managing partner, Ms Glynis Wynn-Jones, comes to you and says she has been contacted by Harold who is thinking of selling the entire complex (lots A, B and C) to a wealthy Russian investor - Anastasia Irikov. Anastasia is seeking vacant possession of each lot as a condition of sale as she wants to redevelop the entire complex. Write a memo to Glynis (using the precedent provided) explaining, in your view, whether vacant possession is possible with respect to each of the three lots. In your memorandum consider any potential legal bases on which Charlie, Tony and Claudia may be entitled to remain on the premises, and if so, for how long. Task 2 – Drafting (5 marks) 100 words max Assume the proposed sale to Anastasia fell through but that Harold has now been approached by another wealthy overseas investor looking to enter the Brisbane property market. Putin to Work Pty Ltd (“Putin”) offers to buy the entire complex (Lots A, B and C) for seven million dollars. Harold is keen to sell to Putin but wants to protect Charlie, Tony and Claudia’s interests when the new landlord takes over. Draft a special condition in the contract for sale of land between Harold and Putin to give effect to Harold’s wishes. Assume the same contract will be used for all three lots. Further instructions/information
  • You can assume your audience understands technical legal terminology. Your task is to understand and apply the legal rules from property law.
  • Get quickly into answering the set question(s). Do not waste time/words with irrelevant information.
  • Marks are allocated in accordance with the criteria sheet attached.
  • Only place primary law (case law and legislation) in the footnotes to your memo. These are not included in the overall word count.
  • Follow the AGLC4 when footnoting. Do not cite the textbook or the podcasts or any commentary from the web (e.g. blog sites, law firm website etc.).
  • Headings and signatures are included in the word count, but not the early part of the precedent (e.g. memo from/to).
  • Dot points are OK, but please use them sparingly. You should be writing in full paragraphs (3-4 sentences long).
  • Only use two levels of headings (i.e. 1 XYZ and 1.1 XYZ).
  • There may be principles or other areas of law relevant to this question (e.g. contract law), but it is only necessary to raise them briefly insofar as they relate to property law.
  • There is no need to consider the Retail Shop Leases Act 1994 (Qld) in your answer.
  • If the facts are unclear, or if you think you need further information to reach a conclusion, be clear about this in your memo. For example,
o “If we assume the contract was validly created on x date…” and/or o “This conclusion is subject to obtaining further information from the client, for example, we will need to know exactly when the document was signed between X and Y…”