Brian B, a lawyer and close friend of Stu, a partner at the law firm Wells & Co, Lawyers LLP, heard from Stu about what seemed like the perfect house that he, Brian, was looking to buy. Stu had said he had a long-time client, Mike, an elderly man whose wife had recently passed away that wanted to sell the family home and move into a rather quickly selling condo complex he was interested in. Knowing this, Stu gave Brian Mike's personal information, so that he could call him directly and arrange for a private sale.

After driving by and confirming his interest in the home, Brian phoned Mike to discuss viewing the house, making sure he understood that he was a friend of Stu's and that he had received his phone number from Stu. Mike was anxious to get the house sold, as he had put an offer in on the condo he wanted, but needed the house sale proceeds to complete a deal on the condo.

Mike's house was old, with cosmetic upgrading required, but it was structurally sound and prices were increasing rapidly in his neighbourhood. Despite this, Brian offered to buy Mike's house for less than the house next door to him had sold for two years previously despite it being in "tear down" condition.

The sale was completed, and after the "deal" was complete, Mike's friends were shocked at how low a price Mike had received, yet his answer always seemed to be that since Brian was a friend of his lawyer Stu, he too could be trusted. However, Mike is now thinking differently, and wants your advice as to what has transpired and whether the sale could be rescinded, given that the market had been rising for the past two years and he clearly sold his home for substantially less than what he was paid for it, even without the extra cost he might have incurred if he had used a real estate agent.

1 Would Mike be successful in having the sale rescinded? On what grounds? Discuss with reference to applicable law and cases. (9 Marks, Approximately 9 Minutes)

2Describe what Brian could have done to avoid a complaint against him. (3 Marks, Approximately 3 Minutes)

3 If, when touring the house, Brian had seen expensive jewelry worth $34,000 on display at Mike's house, and Brian had stolen some of it, but was later caught, what court or disciplinary actions could Brian possibly face for the loss of the jewelry. Set out both the type of action he could face, and the court which would hear the matter.