Business and company law

QUESTION ONE

Answer all questions in this section. (35% of the total marks available)

SECTION ONE

Answer ALL questions in this section.

  1. In relation to English legal system,

Required
a. Explain and discuss the differences between private law and public law including the areas of law that they cover. (12%)
b. Explain the English legal doctrine of stare decisis and the system of judicial precedent. (8 marks)
c. Compare and contrast their advantages and disadvantages, and comment upon the circumstances where judicial precedent might not be followed. (15 marks)
(Total: 35 marks)

SECTION TWO

Answer ALL questions in this section.

On 10th August 2016 Empire Cruise Ltd (“Empire”) advertised a second-hand cruise liner, the Queen Mary, for sale in a cruise industry trade journal for £5 million. The next morning Adomako, the Chief Financial Officer of Sunrise Cruise Ltd (“Sunrise”) rang Brinda, Empire’s CEO, and said that Sunrise was interested in viewing with a potential to buy the Queen Mary, however he would be out of office on a ten-day business trip to Denmark and would not be able to view the cruise until his return. Brinda said that Empire would sell the Queen Mary to any other buyer if they found the offer attractive. Adomako then said that Sunrise would pay Empire £50,000 if Empire would not sell the cruise liner to another buyer for the next ten days (i.e. until 21st August). Brinda agreed.

On 20th August Caroline, the CEO of LBSU Ltd (“LBSU”) came to view the Queen Mary and expressed an interest to buy it at the asking price. Brinda said that Empire could only sell the cruise liner to LBSU from 21st August onwards and asked her to contact again the next day. Caroline contacted Brinda the first thing in the morning of 21st August. Brinda and Caroline re-discussed the deal with the same terms and agreed the sale and purchase of the Queen Mary for £5 million straightaway. Later that same day, Adomako rang to arrange for viewing the Queen Mary. Brinda told him that the Queen Mary had just been sold to LBSU and demanded Sunrise to pay the £50,000. Adomako refused.

Each part of your answer must be supported by relevant authority (case law or statutes).

Analyse the above situation with respect to the rules governing the formation of a contract. In particular please answer the following:
(a) The legal nature of Empire’s advertisement. (10%)
(b) Explain “consideration” (4%) and discuss the consideration that is applicable in this case. (6%)
(c) Whether LBSU has entered into a binding contract with Empire. (20%)
(d) Whether Empire has entered into a binding contract with Sunrise (20%) and
(e) Whether Empire has any right of action against Sunrise for the £50,000. (5%)

Sample Solution

ACED ESSAYS