ACC520 Legal Regulation of Business Structures

Added on -2020-02-18

| ACC520| 11 pages| 2427 words| 35 views

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Assignment 614712
P a g e | 2CONTENTSQ1(A): Advise Jana and Adrian as to whether SSA is bound to the contracts with Computer Supplies Pvt Ltd:..............................................................................................................................................................3Brief Case Study:.....................................................................................................................................3Legal provisions which attract this Case Study:......................................................................................3Case Summary:........................................................................................................................................5Q1(B): Advise Jana and Adrian as to whether SSA is bound to the contracts withPlastica Pvt. Ltd:............5Brief Case Study:.....................................................................................................................................5Legal Provisions of misrepresentation:...................................................................................................5Case Summary:........................................................................................................................................6Q2: Advise Karen as to whether Jack, Alice and Francis have breached their equitable and statutory duties to Superdry Stores Ltd (including any remedies or penalties that might be applicable)....................7Brief Case Study:.....................................................................................................................................7Has Francis, Jack and Alice have breached their equitable and statutory duties to Superdry Stores Ltd?.........................................................................................................................................................7Remedies for such breach of director’s duties:........................................................................................9Case Summary:........................................................................................................................................9BIBLIOGRAPHY...........................................................................................................................................10
P a g e | 3Q1(A): Advise Jana and Adrian as to whether SSA is bound to the contracts with ComputerSupplies Pvt Ltd:Brief Case Study:Sunshine Scooter Art Pvt. Ltd is a newly established company having three whole timedirectors to manage the business of it namely: Jana Jones, Adrian Allport and BobGolding. The prime motive of the business was to produce custom designated art-workfor scooters. Bob Golding had prior experience of mass production of scooters with anumber of Australian companies which enabled him to be a director of the newlyconstituted Sunshine Scooter Art Pvt. Ltd along with Jana and Adrian who were artgraduates of the same college. Jana and Adrian were the original founder of thecompany and with a joint decision they recruited Bob who could help them in thebusiness as he was well acquainted in the same domain. Bob goes into a contract withComputer Supplies Pvt. Ltd on behalf of Sunshine Scooter Art Pvt. Ltd and purchases10 computers for office use, even before Sunshine Scooter Art Pvt. Ltd got registeredon pen and paper. Legal provisions which attract this case study:As Sunshine scooters Art Pvt. Ltd was not registered as a company till 10th of August,so a contract entered before 10th August by anyone on behalf of the said companywould not be a valid contract because there was no existence of the company in theeyes of law when the contract was entered into. Bob was not even the director of thecompany when he signed such contract with Computer Supplies Pvt. Ltd. Thecompany Sunshine Scooters Art Pvt. Ltd itself got registered on 10th of August whereasBob being a director of the company entered into a contract by purchasing computerson 4th of August which in itself is void because non existence of subject-matter.Though the time of delivery of the said computers were 1st September it cannot be avalid contract because the date when the agreement between SSA and CSP was signedto become a contract was way before SSA was even a registered company under ASIC(Australian Securities and Investment Commisson).
P a g e | 4Under section 4, amisrepresentation induces the representee to enter a contract providing falserepresentation of facts or law.1 Types of Misrepresentation are viz;Innocent MisrepresentationNegligent MisrepresentationFraudulent MisrepresentationHere, Bob’s statement was misleading and deceptive over the contract. He knew thefact that SSA was not a registered company under ASIC when he entered into such acontract with CSP on behalf of SSA. His intent was to deceive CSP by Fraudulentmisrepresentation and acquire financial products from them which satisfies therequirements under this provision of the Corporation Act, 2001.2Case Summary:Bob misrepresented in the contract which he entered with CSP. He was silent about thefact that SSA was not a company yet when he went into a contract with CSP on SSA’sbehalf just because he was anxious and ready to start things prior for the business. Hisintent remains the same which was to conceal a fact and misrepresent CSP by enteringinto a contract with it. The day in which he signed a contract on behalf of SSA withCSP was six days before when SSA actually came into existence as a company. Underthe provisons of the contract law the contract is voidable at the option of CSP.Q1(B): Advise Jana and Adrian as to whether SSA is bound to the contracts withPlastica Pvt.Ltd:1 Section 4 of The Misrepresentation Act, 1967.2Bisset v Wilkinson[1927] AC 17.

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