Eric has a farm that he claims has silver deposits. The land was valued at 1 million dollars in June 2017. He incorporates a company called Silver Pty Ltd (“Silver”) on 2 July 2017. He is the sole director and shareholder of this company. On 3 July 2017, he then sold the land to Silver for 2 million dollars. On 5 July, he approaches Mineral to purchase the land for 2 million dollars. The purchase price is to be provided by Mineral purchasing 2 million $1 shares of Silver. In August, a detailed report by an independent geologist established conclusively that there is no silver in the land. Eric is now being sued by Silver. Discuss what are the chances of Eric being able to defend himself.
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