This presentation provides expert advice on contract and corporation law. It covers topics such as capacity of parties, assumptions made by the other party, and liabilities in contracts. The presentation includes relevant rules, applications, and conclusions for each topic.
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Contract and Corporation Law
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Issue To advise john whether: •He would be bound to buy the tools; •He could enforce the contract with AppTools; and •He could be sued to recover remaining price of the BuzzTools’ shares.
Rule •Capacity of the Parties – one of the essential element of a valid contract. •People abstained from contracting : 1.Minor 2.Lunatics 3.Intoxicated people 4.Bankrupts
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Rule (contd…) •Minor : Individuals below 18 years of age •Under Common Law, Minors are barred from entering into a contract except for: 1.Contract for necessities 2.Beneficial contract of employment •In Nash v Inman[1908] 2 KB 1, Section 7of the Goods Act 1958 shaped the similar notion of the common law.
Application •Purchase of tools for plumbing apprenticeship indicate ‘Necessity’. •John is a minor who cannot enforce for deriving benefit from a company trading in shares. •On the similar note, John cannot be sued for he is a minor and does not have the capacity to deal in stock market.
Conclusion Therefore to conclude, •John could be made bound by the contract for buying the tools. •He cannot enforce the contract to gain the profit from the sale of his AppTools shares. •The liquidator cannot sue John to recover the remaining money that he owed on the BuzzTools shares.
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Issue •To ascertain what Carver’s Pty Ltdwould assume regarding Adam's affixation of the company seal to the contractual documents; and •To ascertain the party who may be liable to pay Irish linen Ltd.
Rule •A) Assumptions made by the other party As per section 127 (2), When a company execute a document under its common seal, and there should be witness to observe such fixing. Witnesses include: 1.Two directors; or 2.One director and one Company Secretary; or 3.A sole director, in case of a sole proprietary company.
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Rule (contd…) •B) Contracts signed before registration Under section 131 (1), a pre-registration contract needs to be ratified: 1.within the time that has been agreed by the parties to the contract; or 2.within a reasonable amount of time of the signing the contract in case there is no agreed time
Application A.A party to a contract is therefore free to assume that the company that have affixed its common seal on a contractual document would be legally bound to executed it. B.The court would either order Master Plate: •to make a payment of the entire or a part of the damages; or •to return the tablecloths to Irish linen for not ratifying the contract; •c) to make the legitimate payment of Irish linen for the tablecloths that was supplied.
Conclusion •Carver’s Pty Ltd is supposed to make an assumption of a prevalence of a valid agreement. •Master Plate Pty Ltd would be liable to pay Irish linen Ltd.
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