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Important caselaws on Company law Leading Cases on Company Law

1. The Insurance Company was not held liable to him. 2. A shareholder cannot insure the company's property in his own name even if he is the owner of all or most of the company's shares.

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Law Case Study – How To Answer Case Studies in Law

One of the major challenges students have in business law and other law courses are answering questions under the case study. In this article, I will explain how to answer any law case study question following the same rule you are aware of and which is generally recommended. The IRAC or IDAC Principle.

Law Case Study Tips

IRAC Principle is an acronym which depicts,

“I” for Identification

“R” for Rule(s)

“A” for Analysis

“C” for Conclusion

While the IDAC Principle depicts the same but “D” stands for Definition.

Law Case Study – Question 1

Chuddy requested Kris to transport goods from Lagos to Darlington’s estate in Enugu state for the sum of N200,000.00. Kris replied that he was only prepared to transport the goods for N300,000.00.

Chuddy wrote back to Kris asking him to reconsider the initial price, but Kris did not reply to his letter. Two days later, Chuddy delivered the goods to the business premises of Kris, who transported them to Darlington’s Estate in Enugu State.

Chuddy has refused to pay the N300,000.00 demand by Kris, saying that there was no concluded contract. Advise the party using relevant authorities.

 [Question 1, First Semester Exam 2014/2015. BAM – YABATECH]

ANSWER/SOLUTION

Let’s make use of the IRAC Principle to answer this question, but before this, let me quickly explain how it works.

“I” – Identification.

First of all, you need to identify under which law the case falls, if it is LAW OF CONTRACT then you consider the elements of the law of contract which are Offer, Acceptance, Consideration, Invitation to treat etc…

• So, from the case above, after reading the question/case, you’ll find out that it is AN OFFER . An offer is a definite undertaking with the expectation that it will become binding when the person accepts but since there was no acceptance between Chuddy and Kris, it means that the offer was terminated.

“R” – Rules

From the above rule, we can say that the offer is a counter-offer because the terms [amount involved] were not accepted by both parties which also means that it was rejected.

So, what are the rules for termination of an offer?

• An offer can be terminated through or by Revocation by rejection, the death of either party, the lapse of time and counter-offer [it varies the terms of an offer]

 “A” – Analysis

By Analysis, you are expected to analyze the case study on some facts and principles that are similar in the area of law . [Always remember to lay emphasis on established facts and principles]

Since we have identified the rules applicable stating that it is a counter-offer and it was rejected then let’s see what it means.

• Counter Offer: In a nutshell, counter offer varies the terms of an offer
• By rejection: It means the offeree did not accept the terms of the offer.

“C” – Conclusion

Here, you are expected to conclude your judgment based on legal facts and principles you have identified. Your conclusion should also entail which party has the right to sue or succeed if the matter is taken to court for legal actions.

• So, since a counteroffer cannot give rise to a binding agreement, it means that Kris should not take the issue to court because, by the means of a counteroffer, there was no agreement between both parties.

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Thanks bro…. Bless you too

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Problem Questions and Answers on Company Law

“Problem Questions and Answers on Company Law”

• Under the Companies Act 1985[1] the Memorandum of Association[2] sets out a company’s constitution and objectives. It’s also forms the basis of a company’s existence, by regulating external affairs (ss 2-6, CA85)[3].

The MoA was significantly simplified later by the Companies Act 2006[4]. Now, it requires the names of the first subscribers. Also under s 8 (1)(b)[5] it states that the first subscribers must be allotted with at least one share and automatically become members of the company. The new act merely evidences the subscribers` intention to form a new company and thus upon registration, the members need to authenticate it[6]. IN01 Form

• Along with the MoA, an application for registration and a statement of compliance must be delivered to the Companies House; referred to as the IN01 Form.

The CA85 replaced various requirements of the MoA with the Application for Registration[7] (s. 9, CA06)[8], as well as speeding the manual process of the MoA`s content (ss 2 and 10, CA85)[9]. The information required is included in s 9(2), s 9(4), s 9(5) and 9(6) of CA06[10], and briefly this includes the company`s details such as the name, place of registered office, shares, capital, proposed officers and a copy of the company`s AoA. All these need to be delivered to the relevant registrar with the required fee[11]. Part 1

• The company is identified by its name and serial number, hence they both need to be unique. As this is a private company, limited by shares, the correct suffix must be placed at the end; Limited or Ltd (s 59 (1), CA06)[12]. The name on the index can be checked by the WebCheck[13].
• ABCD Limited is not available as it is already on the registrar. s 66(1), CA06[14] clearly states that a company cannot be registered by the same name as another company in the index of company names(s 1099)[15].
• Friends Ltd is free in the registrar. However, it is not advised to use this name as a company FOURFRIENDS LTD is in the registrar’s index. Technically, you can use 4 Friends Ltd but under s 67(1), CA06[16], the Secretary of State[17] may judge that this will be passed off as a similar name. In that case, the company will have to change its name within 12 months of registration (s 68(2), CA06)[18], unless FOURFRIENDS LTD has given consent for the proposed name to be used.
• Adam & Company Limited is available on the registrar, but in the index a company under the name ADAM & COMPANY PUBLIC LIMITED COMPANY is registered. Thus, as stated in Part 1 C. II, this is a matter of the SoS to decide upon.
• A Thru D Ltd is available on the registrar.
• Belle & Co Ltd is already on the index and thus it cannot be used. See Part 1 C. I.
• The Red Cross Federation Limited cannot be used. To begin with, this will be interpreted as a misleading name (s 76(1), CA06)[19], as the company has nothing to do with the non-profit Red Cross organisation.

In addition, even if the name is not interpreted as misleading, then under the Geneva Conventions Act 1957[20] it cannot be used under any circumstances. s 6(3)[21] Clearly prohibits anyone to use wording that is associated with the Red Cross Organisation[22].

• Registered office (s 9 (2)(b), CA06[23])
• A company requires a registered office at all times because this is where all communications and notices will be addressed[24]. In addition, under s 86, CA06[25] the registered office is the address stated available for inspection for any register, index or other document; and, that all documents by said company have the address mentioned[26].
• A company that is registered in “England and Wales” cannot have a registered office in Scotland or Northern Ireland. It’s a different jurisdiction and upon registration they will have to state in what jurisdiction the company will be; A5 of the IN01 form (s 15 (2)(e), CA06)[27]. If a registered office is required in Scotland or in Northern Ireland, then a new company will have to be formed under the specific jurisdiction[28].
• Articles of Association
• The Articles of Association[29] are the rules of a company and govern its internal affairs. In other words this is the constitution of the company (s 18, CA06[30]). In addition, it forms a statutory contract between its members and the company (s 33[31]).

The first Option available on A7 of the IN01 form is to obtain model articles, also known as “off the shelf” (The Companies (Model Articles) Regulations 2008[32]). Option 2 again has to do with “off the shelf” articles but, you can add and/or amend provisions. The additional and/or amended provisions must be attached to the IN01 form. As opposed to Options 1 and 2, Option 3 is entirely new articles. For instance, all the provisions are drafted from scratch, known as bespoke articles; a copy of the bespoke must be submitted with the IN01 form[33].

• As they want to amend certain articles, it is advised to use Option 2 and tick the first box (Private limited by shares)
• Section A8 of the IN01 form refers to entrenched articles. Entrenched articles are specified provisions which may be amended if conditions are met. However, they are more restrictive than those which only require a special resolution. Entrenchment may be made by the articles on formation or an amendment which is agreed by all the members of the company. However, the court can still order a company to alter its articles, even though they are entrenched (ss 22, 23, 24, CA06[34]).
• Proposed Officers
• A Private company under s 270(1), CA06[35] does not require a company secretary. This however, was not the case before 1st of October 2009, when the CA06 came into force. Under s 283, CA85[36], every company was required to have a secretary.

The functions of a company’s secretary are not defined in the acts. However, a better understanding is made in the case of Re Maidstone Buildings Provisions Ltd[37]. The judgment held that “A secretary is not concerned in the management of the company. Equally, I think he is not concerned in carrying on the business of the company … a person who holds the office of secretary may in some other capacity be concerned in the management of the company`s business[38].”

• A corporate secretary ensures the integrity of the governance framework, and for the efficient administration, for example, ensuring compliance with statutory and regulatory requirements and implementing decisions made by the board. The corporate secretary is not necessarily a human being.

As a company secretary is not defined in the act, then for now they might not need a corporate secretary.

• Yes, everyone can be a director as s 154, CA06[39] states that a private company must have at least one director. Hence, it is possible to have 4 directors.
• A corporate director is a natural person acting as a director of the company.

From the 1st of October 2010 all companies are required to have at least one natural director (s 155, CA06[40]) and his details must be stated in E1 of the IN01 form

• The “Usual Residential Address[41]” it the usual home address of the natural person acting as the director and will not be available to the public record. Whereas, the “Service Address” can be used to receive communications by third parties.

The “Service Address” can technically be the same as the “URA”. However, as the “Service Address” is publicly recorded, it is advised to use a different “URA” so that the information is disclosed from the public. This has replaced the old system where only officers at serious risk could have their residential addresses kept off the public record; and with the old system the registered office could be the same as the “URA”[42]. The necessary information is given in sections D1-D5 of the IN01 Form and it is in accordance with s 165, CA06[43]. Part 3

• Statement of Capital
• As soon as the Companies Act 1985 was in force, a company was required to have a nominal value of shares. This is a fixed amount prescribed by members (s 542, CA06)[44]; in our case, the nominal value is A£1. The Shares can never be issued at a discount (ss 552 and 580, CA06)[45], in other words, lower than their nominal value. The case of Ooregum Gold Mining Co v Roper [1892][46] illustrates this point when it refers to a “Fixed amount” for nominal value.

On the other hand, the share premium is the amount received over and above the face value of the shares (anything over A£1) (s 610, CA06)[47]. Generally speaking there are no restrictions on who holds shares, but the company which cannot be a member of itself (Trevor v Whitworth (1887)[48]. However, there are some exceptions stated in s 659, CA06[49]:

• Treasury shares (s 724, CA06)[50].
• Shares may be acquired for the purpose of capital maintenance.
• Ordinary shares are used to describe the shares of a company with only one class of shares. In the CA06 they are known as “equity shares”. They are the simplest form of shares and generally carry one vote per share, but have no dividend rights attached to them (s 560)[51].

In contrast, Preference shares give the holder preferential rights, usually in dividends and/or return of capital when winding up the company. Preference shares are not defined in the Act, however, they are eligible to receive automatic “Fixed preferential cumulative dividend”. In other words, shareholders with Preference shares are entitled of any dividends that have been omitted in the past, and if more dividends are left then common shareholders receive those rights[52]. The statement of capital must be completed in F1-F5 of the IN01 form. H. Initial Shareholdings.

• When filling in section F5 all they need to be aware of is who has ownership of the company. The ownership is determined by the percentage of issued share capital that each shareholder owns.

Parts 4 and 5 I. They do not need to complete both parts as part 4 is just for companies limited by guarantee (Charities). However, Part 5 needs to be completed by all companies (Statement of compliance). Final Page J. The fee owed to the companies house for registering depends if it is submitted electronically or by paper and if you need the same-day incorporation service. Below is a breakdown of the fees[53]: Electronic (Software)

• Same-day: A£30
• Normal: A£13

Electronic (Web incorporation Service

• Normal: A£15
• Same-day: A£100
• Normal: A£40

*Fees are subject to periodic change. You should always check the Companies House for current fees[54]. Articles of Association K. Tweaking the Articles

• Yes, referring back to E. II., our clients have chosen to use model articles with certain amendments of provisions. It is permissible to delete the reference to Article 8[55] in 7(1)[56] and Article 8 as long as they attach a copy of the changes before submission.

However, Deleting Article 8 might interfere with Article 15[57] in the future. Thus, it is not advised to delete Article 8.

• Yes, they can change it but it’s irrelevant because Article 11(2)[58] states that “it must never be less than two”. Therefore, this already meets their requirements.
• Yes, they will have to amend/remove Article 17(1)(a)[59].
• Article 26(5) of the model articles ensures that the directors have the authority to refuse anyone to register the transfer of a share. And, under Article 27(2)(a)[60], they may choose to become holder of these shares or have them transferred to another person.
• The default is two qualifying persons at a meeting (s 318 (2), CA06)[61]. In the scenario that they want to set the quorum at 3, then they will have to add that provision to article 38 of the model articles and again ensure that they attach the copy before registration.
• The directors have the authority if they decide to use a company seal or not (Article 49 (1))[62]. In that case, there is no need to remove this provision.

L. After registration the company still has the power to amend any of its AoA (s 21, CA06[63]), which can be done under a special resolution (must be a resolution by the members passed by 75%) (s 283[64]). However, there are some limitations. For example, a clause limiting the company from amending is invalid as seen in the case of Punt v Symonds & Co Ltd[65]. The alterations must be “for the benefit of the company and the members as a whole”[66]. Allen v Gold Reefs Of West Of Africa Ltd[67], in which it was held that alterations could not be inferred with the court unless the amendments were bona fide for the goodwill of the company, illustrates this point. Any amendments of the articles must again be sent to the registrar (s 26(1), CA06) and published (ss 1077/1078, CA06[68]). M. They should include a clause in the AoA about Erin. However, will she be bound by it? Case law suggests that she won’t be bound it. The test is provided in Hickman v Kent or Romney Marsh Sheep-Breeders Association[69], and it stated that “an outsider to whom rights purport to be given by the articles in his capacity as such outsider, whether he is or subsequently becomes a member, cannot sue on those articles treating them as contracts between himself and the company to enforce those rights”[70]. As Erin is Adam`s daughter, she might argue that she is not an outsider. However, in the eyes of the law she is not a member and thus an outsider. She might gain some third party rights under s 6(2) of Contracts (Rights of Third Parties) Act 1999[71] but, this act does not apply to statutory contracts. The only scenario where Erin has rights, is if she creates a separate contract with the company outside the articles. Section 2 – Pre-incorporation Business N. Yes, s 51, CA06[72] allows for pre-incorporation contracts to be entered into.

• Prior to incorporation, the company does not yet exist, and an attempt to act on behalf of the company before the birth certificate[73] has no legal effect as the company may never be formed. A promoter needs to be assigned in order for the company to enter pre-incorporation contracts. The term “promoter” is defined by Lord Cockburn CJ as “one who undertakes to form a company with reference to a given project and to set it going, and who takes the necessary steps to accomplish that purpose”[74].

When signing contracts “for and behalf of” the company, the person authorizing it (promoter) will be usually held liable as seen in the case of Kelner v Baxter (1866-87)[75].

• Promoters may exclude liability and still ensure that the contract is valid through two procedures. The first requires an express term in the pre-incorporated contract to exclude personal liability which may be done under the relevant section[76]. This option terminates the promoter’s personal liability once the company is incorporated. As confirmed in Phonogram Ltd v Lane [1982], where the words “subject to any agreement to the contrary” [77] were analyzed, and interpreted as “unless otherwise agreed”[78]. Hence an exclusion of personal liability must be given[79] .However the promoter must never sign a contract in the name of the company prior to incorporation. As Goddard CJ stated in the case of Newborne v Sensolid Ltd (1954): “as the company was not in existence when the contract was signed there was never a contract” [80].

The Second Procedure is called “Novation”. The newly formed company must create a new contract with the same previous terms. Ratification is not enough as it is now a different contract with the incorporated company instead of the promoter[81]. Section 3 – The Corporate Entity O. It is important to remind ourselves, that this is a company private limited by shares. With that noted, the idea that their personal assets will be protected stems from the landmark case of Salomon v Salomon & Co [1897][82]. The main principle of Salomon derives from the wording “separate Legal Entity”. To form a better understanding, “separate legal entity” means that the company acts as a juristic person in the eyes of the law thus, the individuals involved in the company are not personally liable if something should go wrong[83]. The company as its own legal person is liable for all its debts, not the owners. Therefore, only the company can be sued and not the members; risk only arises to the members if assets were purchased illegally. However, there are exceptions to this principle and this aspect is one of the most ambiguous areas in company law. This is where a court decides to ignore the “separate legal personality”; and it was created by the landmark case through the wording “the veil of incorporation”. There is no general principle on how a judge might decide to lift the corporate veil[84]. However, the corporate veil might be lifted where there is clear abuse of the corporate form. This was illustrated in the case of Jones v Lipman [1962][85] where an unlawful refusal to sell a house was made due to the sham transfer of the house to a company controlled by Lipman[86]. Thus abysmal circumstances might lead to personal liability if decided so by the judges. Bibliography

• Primary sources
• Allen v Gold Reefs Of West Of Africa Ltd [1900] 1 Ch 656
• Hickman v Kent or Romney Marsh Sheep-Breeders Association [1915] 1 Ch 88a
• Jones v Lipman[1962] 1 ALL 442 (ER)
• Kelner v Baxter[1866-87] 2 LR 174 (CP)
• Newborne v Sensolid (Great Britain) Ltd[1954] 1 QB 45
• Ooregum Gold Mining Co v Roper [1892] AC 125
• Phonogram Ltd v Lane[1982] QB 938
• Punt v Symonds & Co Ltd [1903] 2 Ch 506
• Re Maidstone Buildings Provisions Ltd [1971] 1 WLR 1085
• Re Northumberland Avenue Hotel Co Ltd[1886] 38 ChD 156
• Salomon v Salomon & Co [1897] 22 AC
• Supplies Ltd v Jerry Creighton Ltd[1951] 1 KB 42
• Trevor v Whitworth (1887) 12 App Cas 409
• Legislation
• Companies (Model Articles) Regulations 2008/3229
• Companies Act 1985
• Companies Act 2006
• Contracts (Rights of Third Parties) Act 1999
• Geneva Conventions Act 1957
• The Companies (Model Articles) Regulations 2008
• Secondary Sources
• Alexis Mavrikakis, Helen Watson, Christopher Morris and Nick Hancock,CLP Legal Practice Guides: Business and Company Legislation(College of Law Publishing, UK 2014/15)
• Alexis Mavrikakis, Helen Watson, Christopher Morris and Nick Hancock,CLP Legal Practice Guides: Business and Company Legislation(College of Law Publishing, UK 2012/13)
• Boyle and Birds,Company Law(8th, Jprdan Publishing Limited, Bristol 2011)
• Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 74-77
• L.S. Sealy,Cases And Materials In Company Law(Cambridge University Press, Cambridge 1971)
• Sealy and Worthingtons,Cases And Materials In Company Law(10th, Oxford, UK 2013
• Susan McLaughlin,Unlocking Company Law(2nd, Routledge, Oxon 2013)
• A Daehnert, ‘The minimum capital requirement – an anachronism under conservation: Part 1’ [2009] Comp. Law
• G Scanlan, ‘The Company Names Adjudicator – A New Regime – New Principles’ [2007] Comp. Law, 172
• S Ottolengthi, ”From Peeping behind the Corporate Veil, to Ignoring It Completely’ [1990] Modern Law Review
• Tan Cheng-Han, ‘Veil piercing – a fresh start’ [2015] Journal of Business Law
• Dictionaries
• Woodley, M. G,Osborn’s concise law dictionary.(11th, Mick Woodley, London : Sweet & Maxwell/Thomson Reuters 2009)
• www.companieshouse.gov.uk
• Ben Pettet, ‘Promoters and pre-incorporation contracts’ (Oxy.com 2013) <https://law.oxy.co/promoters-and-pre-incorporation-contracts-91620/> accessed

[1] CA85 [2] MoA [3] Companies Act 1985 s 2-6 [4] CA06 [5] Companies Act 2006 s 8(1)(b) [6] Woodley, M. G,Osborn’s concise law dictionary.(11th, Mick Woodley, London : Sweet & Maxwell/Thomson Reuters 2009 ) 42 [7] IN01 Form [8] Companies Act 2006 s 9 [9] Companies Act 2006 s 2,10 [10] Companies Act 2006 s 9(2), 9(4), 9(5) and 9(6) [11] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 74-77 [12] Companies Act 2006 s 59(1) [13] https://wck2.companieshouse.gov.uk/ (WebCheck) [14] Companies Act 2006 s 66(1) [15] Companies Act 2006 s 1099 [16] Companies Act 2006 s 67(1) [17] SoS [18] Companies Act 2006 s 68(2) [19] Companies Act 2006 s 76(1) [20] Geneva Conventions Act 1957 [21] Geneva Conventions Act 1957 s 6(3) [22] G Scanlan, ‘The Company Names Adjudicator – A New Regime – New Principles’ [2007] Comp. Law, 172 [23] Companies Act 2006 s 9(2)(b) [24] Supplies Ltd v Jerry Creighton Ltd[1951] 1 KB 42 [25] Companies Act 2006 s 86 [26] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 98 [27] Companies Act 2006 s 15(2)(e) [28] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 97 [29] AoA [30] Companies Act 2006 s 18 [31] Companies Act 2006 s 33 [32] The Companies (Model Articles) Regulations 2008 [33] Alexis Mavrikakis, Helen Watson, Christopher Morris and Nick Hancock,CLP Legal Practice Guides: Business and Company Legislation(College of Law Publishing, UK 2014/15) 59 [34] Companies Act 2006 s 22,23 and 24 [35] Companies Act 2006 s 270(1) [36] Companies Act 1985 s 283 [37] Re Maidstone Buildings Provisions Ltd [1971] 1 WLR 1085 [38] Susan McLaughlin,Unlocking Company Law(2nd, Routledge, Oxon 2013) 235-236 [39] Companies Act 2006 s 154 [40] Companies Act 2006 s 155 [41] URA [42] Alexis Mavrikakis, Helen Watson, Christopher Morris and Nick Hancock,CLP Legal Practice Guides: Business and Company Legislation(College of Law Publishing, UK 2012/13) 125-126 [43] Companies Act 2006 s 165 [44] Companies Act 2006 s 542 [45] Companies Act 2006 s 552 and 580 [46] Ooregum Gold Mining Co v Roper [1892] AC 125 [47] Companies Act 2006 s 610 [48] Trevor v Whitworth (1887) 12 App Cas 409 [49] Companies Act 2006 s 659 [50] Companies Act 2006 s 724 [51] Companies Act 2006 s 560 [52] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 157-60 [53] Companies Act 2006 s 1063 [54] https://www.companieshouse.gov.uk/toolsToHelp/ourPrices.shtml [55] Companies (Model Articles) Regulations 2008/3229 Article 8 [56] Companies (Model Articles) Regulations 2008/3229 Article 7(1) [57] Companies (Model Articles) Regulations 2008/3229 Article 15 [58] Companies (Model Articles) Regulations 2008/3229 Article 11(2) [59] Companies (Model Articles) Regulations 2008/3229 Article 17(1)(a) [60] Companies (Model Articles) Regulations 2008/3229 Article 27(2)(a) [61] Companies Act 2006 s 318(2) [62] Companies (Model Articles) Regulations 2008/3229 Article 49(1) [63] Companies Act 2006 s 21 [64] Companies Act 2006 s 283 [65] Punt v Symonds & Co Ltd [1903] 2 Ch 506 [66] Boyle and Birds,Company Law(8th, Jprdan Publishing Limited, Bristol 2011) 123-130 [67] Allen v Gold Reefs Of West Of Africa Ltd [1900] 1 Ch 656 [68] Companies Act 2006 ss 1077/1078 [69] Hickman v Kent or Romney Marsh Sheep-Breeders Association [1915] 1 Ch 88a [70] Sealy and Worthingtons,Cases And Materials In Company Law(10th, Oxford, UK 2013) 254 [71] Contracts (Rights of Third Parties) Act 1999 s 6(2) [72] Companies Act 2006 s 51 [73] s 15, Companies Act 2006 [74] L.S. Sealy,Cases And Materials In Company Law(Cambridge University Press, Cambridge 1971) 19 [75] Kelner v Baxter[1866-87] 2 LR 174 (CP) [76] s 51, Companies Act 2006 [77] Phonogram Ltd v Lane[1982] QB 938 [78] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 71 [79] S 51, Companies Act 2006 [80] Newborne v Sensolid (Great Britain) Ltd[1954] 1 QB 45 [81] Re Northumberland Avenue Hotel Co Ltd[1886] 38 ChD 156 [82] Salomon v Salomon & Co [1897] 22 AC [83] Susan McLaughlin,Unlocking Company Law(2nd, Routledge, Oxon 2013) 64-68 [84] S Ottolengthi, ”From Peeping behind the Corporate Veil, to Ignoring It Completely’ [1990] Modern Law Review 338-350, 338 [85] Jones v Lipman[1962] 1 ALL 442 (ER) [86] Charles Wild and Stuart Weinstein,Company Law(16th, Pearson Education Limited, Edinburgh gate 2013) 35-48

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Case study assignments are a detailed investigation done on specific individuals or organizations using disciplinary knowledge of a particular subject. Marketing, nursing and case study assignments are the most common case study writing tasks encountered by students. For a law student, writing a company Law case study assignment is like the firsthand account of a real legal dispute that needs legal attention. This type of company law case study and answers help law students for legal services later. There are some tips given below to help students with company law case study assignments .

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Myassignmenthelp.com offers you a library of samples of company   law dissertation   & case studies with answers. These samples are written by experts having their Masters and PhDs degrees in Law from reputed universities. Students who have little or no understanding of company law or company law case study writing can surely rely on these samples to craft impressive write-ups. They can further clear all their queries regarding the subject through these company law case   study help . Since these answers are precisely written, they can help gain a better understanding of the subject and hence score top grades in not just assign tasks but also in exams. So, a bright academic career is just a few clicks away. All that students have to do is, connect with our experts, share their case study requirements, and leave the rest to us.

How Can I Get Company Law Case Study Questions And Answers Help?

Getting help with company law case study questions and answers is easier than ever. At MyAssignmenthelp.com, we keep things simple and easy to follow so students can get company law case studies with answers without fearing the complicated ordering process. Thus, follow the steps below to request help with a case study of company law.

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Questions Related to Company Law Case Study and Answers

It has been a general consciousness among career counselors that all the legal practice areas are not equally worthwhile. It has been found that some areas of legal practices are vulnerable to economic fluctuations. legislationIt has been found that intellectual property law, business laws, and environmental laws are the most preferred areas of law students.

Company law case study assignments mainly help to govern the areas such as sales, commercials, transactions, bankruptcies, mortgages and contracts. It also involves dispute between two legal entities related to such issues. In company law case study assignments , a student of law schools is given such situations of a dispute to come up with the possible legal situations.  Such legal cases studies are exciting and at the same time challenging for most of the law students.

Areas of Company Law Case Study Assignments

There is various areas of company law case study like banking laws, bankruptcy laws, consumer credit laws, contract laws, mortgages and sale laws.

• Banking laws

Banks are the economic institutions that are regulated by the legal status. Banking laws have to operate both at the state level and federal level. It helps to control insurance amount for deposits, interest rates, negotiable instruments.

• Bankruptcy laws

This law provides reduction or elimination of dischargeable debts. It also can provide a timeline for the repayment of some non-dischargeable debts.

• Consumer credit laws

A dispute that occurs between credit card companies and consumers are dealt under such laws.

• Contract laws

Contract law is the legal agreement between two persons that create certain obligations that are enforceable by law. It is quite common to find out a dispute from the breach of contract.

Mortgage includes the transfer of a landed property as the security for loans taken by banks or any other financial organization.

Sale laws help to govern the leasing of goods and transactions for the sale. It has been found that most of the disputes are related to the terms of sale agreement.

Get Some Free Company Law Case Studies Solutions With PDF:

Master of International Business (MIB) University of Wollongong, Australia

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Tips for Company Law Case Study Assignments

Company law case study assignments provide a fictional dispute between two organizations. A law student needs to place that dispute in a particular legal context. Law students need to find legal precedents to that event and need to provide different legal options in accordance with the legal structure of the organization. Some crucial tips are given by our experienced company law case study writers that help a student effectively to develop their company law case study assignments.

If you require assistance, then you can take help from the online company law case study service of MyAssignmenthelp.com. There are examples have been given below for company law case studies along with solutions.

Company law case studies examples

• Legal agreement example:

Mr. A has developed a shopping mall in Sydney at the request of Mr. B, who is a municipal corporater. Mr. C has developed an agreement to pay AUD 2, 50,000. Mr. A accepted the agreement of Mr. C. Is it an agreement or a contract? Give justification of your answer.

This given case scenario is under the consideration. That means the promises executes the work at the desire or under the promisor’s direction. In this case, Mr. A has developed a shopping mall in Sydney in accordance with the request of Mr. B, who is a municipal corporater. An agreement has been made by Mr. C to pay AUD 2, 50,000 and Mr. A has accepted the proposal of Mr. C.

• Case: Morgan vs. Chapel:

In this case, Mr. Morgan has developed a market under the direction of the municipal corporate. The market was allotted to various individuals; Mr. Chapel was one of them. Mr. Chapel has made an agreement that he will pay commission to Mr. Morgan for the land allotment in the market. However, after this agreement Mr. Chapel was not able to pay money to Mr. Morgan. For this reason, Mr. Morgan filed a case against Mr. Chapel.

It has been found from the case study that, Mr. A had developed a shopping mall in Sydney due to the request of corporate C. Mr. C agreed to pay AUD 2, 50,000 to A. In the above case C is stranger between A and B. Hence; there is no valid consideration between A and C. Therefore, it can be stated that there is no valid lawful consideration.  

• Consumer law example:

Mr. Wayne has recently returned a leased vehicle (car) to GM. However, they have charged him for not returning the manual and the service history of the car. Mr. Wayne is not willing to provide anything back to the company, as Mr. Wayne claims that he has not received any manual and the service history of the car from its supplier (the person who gives the car lease). Provide legal advice to Mr. Wayne.

• Case brief:

There is a dispute between Mr. Wayne and the GM, for not gratifying the legal obligations under the lease agreement between the two parties.

• Legal rationale:
• In the lease agreement between Mr. Wayne and GM, the former is responsible for paying for any damage or loss caused done to the company property.
• However, Mr. Wayne has claimed that he had not violated any law, as he did not receive any manual or service history from the supplier. Mr. Wayne has a written evidence of them.
• Under the consumer law, Mr. Wayne has the right to protect his consumer interests.
• Legal advice:
• Wayne should write a letter to the GM and state that he is not able to submit any service history or car manual since he has not received car manual or service history from the suppliers. He also needs to mention that he has written evidence for that.
• Wayne must have to write a letter to the supplier and state that if the case goes up to the court of law, then he is under law to involve the supplier as the primary party responsible for the dispute.
• Contract law example:

A smartphone company ABC has asked a software company XYZ to develop software for them. XYZ Company has provided a total estimate of AUD 20,000 for total work of 30 days.Both the companies agreed that ABC would provide 20% of the total payment to XYZ before starting of the work,50% after the initial stage and 30% after completion.

After ten days of work, XYZ has written a letter to ABC that the project will require more time as the head software developer has left the organization. After 15 days of work, XYZ has given another letter to ABC and mentioned that they would only provide the source code, and they would provide an assistant developer to complete the rest of the work. 

ABC vs. XYZ due to an alleged breach of contract

In the opinion of XYZ, there is a breach of contract. However, in accordance to ABC, the software company was not able to deliver the order within 30 days, as it is promised.

XYZ should give back all the money to ABC. Otherwise, ABC can sue XYZ.

Sample Question And Solution Of Company Law Case Study

MLJ 701-Case Analysis of Re-Saunders

Write a Case analysis of Re: Saunders.

Procedural history

This case had been brought before the Supreme Court of Northern territory by the applicant against the decision of the Law Society to not grant him the right to practice as a local lawyer in the Supreme Court. The student had been prosecuted before the Court of Summary Jurisdiction in relation to the offense of not disclosing his income to Centrelink which would have reduced the amount of money that was to be received by him. The application has been made by the applicant to the Supreme Court with respect to the provisions of the Legal Profession Act to be admitted as a local lawyer. Upon the consideration of the application under the provisions of Section 32 the admission board referred the matter to be resolved before the court in relation to whether the applicant is a fit proper person who can be admitted [at 1].

Introduction: 

Information technology (IT) law provides the framework for the process of storing, collecting, and disseminating electronic information in the concept in the field of the global market. Attorneys practicing in this field of law represents business and the individual from the entire industry sector. They directly benefit to build the structure of the IT transaction in a way, which directly minimizes the economic benefit.

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Most of the universities penalize their students due to late submission of company law case study and answers . For this reason, we emphasize on maintain deadline. We provide all our assignments within the deadline. It provides you sufficient time to proofread your company law case study assignments before submitting it to their tutor. 

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Most Popular Questions Searched By Students: 

Q. 1. what are company law case studies .

Ans:  Case study assignments provide a detailed investigation of a specific organization using the legal knowledge of the subject. Company law case studies help in governing areas such as sales, bankruptcies, transactions, mortgages and other commercial contracts. It also analyses legal disputes between two legal entities. When it comes to a company law case study, a student might have to study similar situations and come up with possible legal situations. 

Q. 2. How Do You Analyze A Company Case Study? 

To begin with, investigate the company’s founding, structure, and growth. Create a chronological list of all the events to identify the strengths and weaknesses of the company. Then examine the opportunities and threats of the company in its   External Environment   Next, create an evaluation report on the gathered data and identify the company's strategy and goals. Analyze the control systems that the company implements and include your recommendations to make improvements. Finally, when you have finished writing it, proofread your work to make sure it is accurate and professional.

Q.3. What Is A Company Law Case Study?

Ans:   A company law case study is a detailed report of the investigation done on an individual or organisation using the knowledge of a particular subject. Corporate law case study, business law case study questions and answers and company law case study questions and answers in PDF and other formats are some of the popular case study writing tasks tackled by students worldwide. Working on a company law case study will help students get a first-hand account of real legal disputes and a deeper understanding of the implemented company laws.

Q.4. How Do You Write A Corporate Law Case Study With Examples?

Ans:   Follow the below-mentioned steps to write a   quality corporate law case study with examples.

Carefully read and examine the case study and take notes to identify the primary problems

Stay focused on the analysis and identify two to five main problems, the reasons they exist and their impact on the business and the people responsible for them

Review the external resources and gathered materials to uncover possible changes/solutions

Select the best solution and start writing the case study following this structure:

Introduction

Case Evaluation

Proposed changes/solutions

Recommendations

After completing the draft, read it thoroughly to ensure the thesis statement is backed by solid evidence. Then, reread the entire document to ensure no component is missing.

You can also refer to sample company law case studies with solutions in PDF at MyAssignmenthelp.com to get a clear idea of writing company law case studies.

Q.5.   How Do You Answer A Case Study In Company Law?

Ans:   To answer   business or company law case study questions and answers, keep in mind the following tips:

Identify the provision and make notes of the issues you have to answer

Apply the identified provision to the facts of the case and construct a logical argument

Conclude your case study with cause and effect based on your findings using the relevant case laws.

Q.6.   How Can I Get Corporate Law Case Study Help With Examples?

Ans:   The best way to get help with company law case study questions and answers in PDF and free example of a company law case study is to sign up with MyAssignmenthelp.com. Our team offering company law case study help are highly qualified with several years of relevant work experience. In addition, most tutors are associated with top law schools, legal firms, and MNCs and are well-versed with company law and the latest guidelines for drafting corporate law case studies with examples.

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HOW TO WRITE ANSWERS FOR COMPANY LAW CASE STUDY QUESTIONS IN CS EXECUTIVE EXAMS UNDER ICSI NEW SYLLABUS

by Midhasaya Purohit

• March 18, 2021
• One Comment

CS EXECUTIVE CASE STUDY QUESTIONS UNDER NEW SYLLABUS BY ICSI

Writing excellent answers for CS Executive Company Law Case Studies questions is one of the most important skill for a CS aspirant. After reading this article you will write better answers in professional exams for case study type questions.

Before we begin, I assume that you have already read law subjects and remember all the provisions. Now the challenge you might be facing is to convert your knowledge of provisions into an excellent answer for a case based questions. Remember that a case based question in your professional exams tests 2 primary skills:

• Your capability to identify the governing law
• Apply the relevant legal principles to a given situation.

So the key to securing good marks in such type of questions is:

First: Remember The Law

You should have thorough knowledge of the relevant law. Identify the underlying legal issues hidden beneath the layers of facts in a problem;

Second: Understanding of The Law

Understanding of the law by applying the relevant law to the facts in question.

To conquer such questions in your exams, planning your answer plays a crucial role. In this process of planning there is no ‘right answer’ but there is what you call a ‘right approach’. So what is the right approach? We call it PAC Method in Pareeksha Commerce Academy . This method was invented by CS Midhasaya Purohit for CS Executive students.

THE PAC METHOD FOR CS EXECUTIVE COMPANY LAW CASE STUDIES QUESTIONS

• Step 1: Identifying the P rovision
• Step 2: A pply the same to the facts
• Step 3: C onclusion with cause & effect

Let us understand the 3 steps in some detail.

STEP 1: IDENTIFYING THE PROVISION

This is a very important step where you need to identify what the question is about from a legal point of view. While going through the question you should pay close attention to hot spots and make note of the issues for which advice is sought. Now when you write your answer make sure you deal with each identified issue separately. This will give your answer a clear structure & provide a reference points helpful for examiner. Once you have identified the issues you need to match the same with the relevant provision of law by filtering through irrelevant provisions.

STEP 2: APPLYING THE PROVISION TO THE FACTS

In this step the identified provision must be applied to the facts of the case as stated in the question. This part of the answer should focus on constructing a logical argument. So make a sensible attempt to apply the law to the factual issues.

STEP 3: CONCLUSION WITH CAUSE & EFFECT

This step is very simple, if you have followed the first two with utmost care. Conclusion of your answer need not be lengthy. It should precisely contain your advice as demanded by the question. You need to make your conclusion based on the reasons that why an issue was raised basing on the rule of law and using the judgment of relevant case laws.

LETS UNDERSTAND WITH AN EXAMPLE

Warner Ltd is an Indian Company with a net profit of ₹ 4, 7, 6 and 7 crores respectively in the last four years. Net profit of each of last four years included a dividend of ₹ 1 crore received from WB Ltd which is an Indian company. Discuss whether Warner Ltd is required to spend on CSR Activities. If yes, how much should it spend? If no, state the reasons for it.

Step 1 – Identify the provision

As per Section 135 of The Companies Act, 2013, the CSR provision is applicable to companies which fulfills any of the following criteria during the immediately preceding financial year

• Companies having net worth of ₹500 crore or more;
• Companies having turnover of ₹1000 crore or more;
• Companies having a net profit of ₹5 crores or more

As per explanation to Section 135, the net profit for the purposes of this section is calculated as per the provisions of Section 198 of the Companies Act, 2013 . As per Section 198 read with CSR rules,

• “Net profit” shall not include dividend income received from another Indian Company (which are covered under and complying with the provisions of Companies Act, 2013)
• The 2% CSR is computed as 2% of the average net profits made by the company during the preceding three financial years.

Step 2 – Apply the Provision

• Here, the net profit of Warner Ltd shall be calculated by deducting ₹ 1 crore which is the dividend income received from WB Ltd. Hence, the net profit for the immediately preceding financial year is ₹ 6 crore (₹7 crore- ₹1 crore) and it thus fulfils the third criteria of Section 135 for applicability of CSR.
• Based on the above explanation, the net profit of the last 4 years is ₹3, 6, 5 and 6 crores.

Step 3 – Draw Conclusion with cause and effect

• Warner Ltd is thus liable to spend on CSR activities as the average net profit for the immediately preceding three financial year exceeds ₹5 crores.
• The amount required to be spent can be calculated as 2% of the average of net profits of the three immediately preceding financial years. The CSR amount to spent is 2% of (6+5+6/3) crores = 11.33 lakhs.

So now that you know how to approach CS Executive Company Law Case Studies question, why not give some questions a try. Let me know in comments section if you face any difficulty or have any queries. Happy Learning.

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• Business Laws (CA Foundation)
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• Secretarial Audit, Compliance Management and Due Diligence (CS Professional)
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• Corporate Laws and Compliance (CMA Final)

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1 thought on “ HOW TO WRITE ANSWERS FOR COMPANY LAW CASE STUDY QUESTIONS IN CS EXECUTIVE EXAMS UNDER ICSI NEW SYLLABUS ”

Thank you sir 🙂. I was really confused abt the writing the conclusion wala part. Never thought of cause effect method. Sir can you give more sample case study questions plzzz? I need them for practicing such questions.

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Company Law Case Study Assignment Questions and Answers

Company law assignment solutions to questions.

Assignment Details:-

• Topic: Company Law
• Subject: Law
• Number of Words: 3500
• Citation/Referencing Style: Harvard

Maliha Ahmed was appointed marketing director of Watlings Ltd (“the Company”), a company specialising in corporate hospitality, in 2019. She, like each of the other three directors, holds 10% of the issued share capital of the Company, with the remaining 60% held by other shareholders. The terms of her service contract provide that she is to hold office for five years.

The Company has adopted the Model Articles (2008/3229, Schedule 1) in their entirety, save that the provision below has been added to article 3.

The directors have the power to negotiate contracts on behalf of the Company

a)      as long as these fall within the Company’s business and b)      do not exceed £50,000 in value.

Any contracts and transactions exceeding this value require the collective consent of the board of directors and an ordinary resolution passed by shareholders at a duly convened meeting.

Ms Ahmed recently negotiated a contract with Bluster & Bluster Ltd, a manufacturer and supplier of tents, gazebos and blinds, to add gazebo and tent hire to the Company’s range. The combined cost of acquiring tents and gazebos comes to £65,000. She believes this extension of the Company’s services to be a good business decision but did not discuss this with her fellow directors before entering into the contract with Bluster & Bluster Ltd. Nor was the transaction placed in front of shareholders for their approval.

The other directors of the Company are not convinced that her ‘renegade’ decision benefits the company and decided that Ms Ahmed should be removed from her directorship. They placed a resolution before the shareholders in general meeting that Ms Ahmed be removed from office. The resolution was duly passed.

Ms Ahmed was at that meeting and made a statement that she intended to take legal advice, insisting that she could not be removed in breach of her service contract. The remaining directors of Watlings Ltd have come to you for advice.

You are required to draft a statement for the board of directors by making reference to relevant statutory provisions and cases explaining

a) Watlings Ltd’s position with regard to the contract with Bluster & Bluster Ltd; and b) Ms Ahmed’s authority and potential liability, if any, for entering into this contract; and c) whether Ms Ahmed acted in the best interest of the company, thus complying with her statutory duty under s 172(1); and d) whether the resolution by the shareholders to remove Ms Ahmed was passed with the requisite authority and following proper procedure; and e) what is Ms Ahmed’s position following her removal with regard to her service contract?; and f) what other legal redress, if any, Ms Ahmed might seek from the Company and/or from the other members (only consider matters of company law here, do not address employment law claims for wrongful or unfair dismissal)?

Learning Outcomes

In undertaking this assessment, you will

•       reflect on and integrate feedback received on your first sit submissions; •       consider the practical aspects of running a company; •       access relevant resources to research information; •       consult relevant statutes and case law to support your findings; and •       write a concise and accurate draft statement on the aspects identified in the brief.

Are you stuck with Company Law Case Study Assignment Questions? If yes, then Assignment Task is there to help you out with assignment help solutions . Get the most reliable Company Law Assignment Help at a cost-effective price. We deliver 100% plagiarism free content with creative writing. Our law expert writers provide numerous academic assistance such as company law case study help, company law assignment samples etc.

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Company Law Notes | PDF, Books, Syllabus | BCOM, BBA 2023

• Post last modified: 5 April 2022
• Reading time: 22 mins read
• Post category: BBA Study Material / BCOM Study Material

Download Company Law Notes , PDF, Books, Syllabus for MBA, BBA, BCOM 2023. We provide complete company law notes . Company Law study material includes company law notes , company law book , courses, case study, syllabus, question paper, MCQ, questions and answers and available in company law pdf form.

Company Law subject is included in B COM and BBA, so students can able to download company law notes for b.com 1st year and company law notes for BBA 1st year.

Table of Content

• 1 Company Law Syllabus
• 2 Company Law PDF
• 3 Company Law Notes
• 4 Company Law Questions and Answers
• 5 Company Law Question Paper
• 6 Company Law Books

Company Law Notes can be downloaded in company law pdf from the below article.

Company Law Syllabus

A detailed company law syllabus as prescribed by various Universities and colleges in India are as under. You can download the syllabus in company law pdf form.

• Definition of company, characteristics of company, lifting the corporate veil, company distinguished from partnership, kinds of companies, incorporation of company, promoter and their legal position.
• Memorandum of Association: contents, alteration, Doctrine of ultra vires.
• Articles of Association: contents, alteration, Doctrine of Indoor Management, Constructive notice of memorandum and articles, Articles and memorandum- their relation and distinction, legal effect of Memorandum and Articles.
• Prospectus: Definition, contents, shelf prospectus, information memorandum, red herring prospectus, abridged prospectus, Misstatements in prospectus and their consequences, statement in lieu of prospectus, underwriting commission and brokerage,
• Membership in a company: Members and shareholders, modes of becoming member, cessation of membership, rights and liabilities of members.
• Shares and share capital: kinds of share capital, alteration and reduction of capital, reorganization of capital, voting rights.
• Corporate Governance: Directors-Qualification; appointment and remuneration; disclosure; service contracts; removal; retirement and disqualification; powers and fiduciary duties; Role and duties of directors in relation to good corporate governance
• Company meetings and proceedings: general meetings of shareholders, requisites of a valid meeting, proxies, voting and poll, resolutions.
• Borrowing power, debentures and charges: ultra vires borrowings, Prevention of oppression and mismanagement: Principal of majority rule, remedial actions for prevention of oppression and mismanagement.
• Winding up: Meaning, Modes, and Consequences of winding up.

Company Law PDF

Company law notes.

What is Company Law?

Corporate law (also known as business law or enterprise law or sometimes company law) is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses.

The term refers to the legal practice of law relating to corporations, or to the theory of corporations. Corporate law often describes the law relating to matters which derive directly from the life-cycle of a corporation. It thus encompasses the formation, funding, governance, and death of a corporation. ( Wikipedia )

Company Law Questions and Answers

Some of the company law questions and answers are mentioned below. You can download the QnA in company law pdf form.

• Who can be a director of a company? Explain the provisions of the Companies Act relating to the appointment of directors by the Board of Directors.
• What is meant by rotation of auditors? What are the provisions related to appointment and rotation of auditors?
• Explain the Doctrine of Ultra Vires with its effects.
• What is meant by EGM? Who can call the EGM and when?
• What is the online registration process of a company?
• What is meant by scrip less trading? Explain the terms participant, registered owner and beneficial owner.
• Explain Voluntary winding up of a company.
• Define a prospectus. Explain the red herring prospectus, abridged prospectus and shelf prospectus.
• What is meant by Investor Education and Protection Fund? Explain the provisions related to its establishment.
• Explain the duties and liabilities of a Director.

Company Law Question Paper

If you have already studied the company law notes, then it’s time to move ahead and go through previous year company law question paper .

It will help you to understand question paper pattern and type of company law question and answer asked in BBA, B COM, MBA company law exam. You can download the syllabus in company law pdf form.

Company Law Books

Below is the list of company law books recommended by the top university in India.

MBA Study Material – Download ✅ [2020] PDF

Download MBA Study Material ✅ PDF, Book, Syllabus [2020]( Download MBA Study Material )

BBA & BCOM Study Material – Download ✅ [2020] PDF

Download BBA – BCOM Study Material ✅ PDF, Book, Syllabus [2020]( Download BBA & BCOM Study Material )

Managerial Economics Notes Download ✅ [2020] PDF

Managerial Economics Notes | PDF, Books, Paper, Syllabus | MBA 2020 ( Download Managerial Economics Notes )

Cost Accounting Notes ✅ [2020] PDF

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Concentrate Questions and Answers Company Law: Law Q&A Revision and Study Guide (3rd edn)  

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions and coursework. Each book includes: typical questions; suggested answers with commentary; illustrative diagrams; guidance on how to develop your answer; key debates; suggestions for further reading; and advice on exams and coursework. Concentrate Q&A Company Law offers expert advice on what to expect from your company law exam and coursework, how best to prepare, and guidance on what examiners are really looking for. Written by an experienced examiner, it provides: reminders of points to consider; indications of key debates for each topic; exam-length suggested answers; clear commentary with each answer; diagram answer plans; cautionary points; tips to make your answer stand out from the crowd; and annotated further reading suggestions at the end of every chapter. The book should help you to: identify typical company law exam questions; structure and write a first-class answer; avoid common mistakes; show the examiner what you know; develop and demonstrate your understanding; identify connections between topics; and find relevant and helpful further reading. As well as separate chapters on exam skills and preparing coursework, it covers: companies and corporate personality; the corporate constitution; shares and shareholders; directors’ duties; company management and governance; minority shareholder remedies; corporate liability (contracts, torts, and crimes); share capital; loan capital; and corporate insolvency. The book is suitable for undergraduate students taking a module in company law on the LLB and GDL, and undergraduate students studying aspects of company law on other degreecourses.

• Guide to the online resources  
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• 2. Companies and Corporate Personality  
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• 4. Shares and Shareholders  
• 5. Directors’ Duties  
• 6. Company Management and Governance  
• 7. Minority Shareholder Remedies  
• 8. Corporate Liability: Contracts, Torts, and Crimes  
• 9. Share Capital  
• 10. Loan Capital  
• 11. Corporate Insolvency  
• 12. Mixed Topic Questions  
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Contract Law Case Study Problem Questions and Answers

Task: Richard has a specialist car dealership. He buys old cars, refurbishes them and then sells them. He also hires out cars.

Richard is restoring an old jeep. It requires a special type of shock-absorber to enable it to travel over rough ground. Richard phones Shocks Are Us. He says to Emma, the manager: “I need four shock absorbers which can be used for off-road driving” Emma consults a brochure published by the shock absorber manufacturer and “Says the D200 shock absorber can be used for off-road driving.”. Richard then agrees to buy four D200 shock absorbers for $ 120 each. When he installs them on the jeep and takes it for a test drive over rough country, the shock absorbers give way and the jeep crashes down, causing $ 2 000 worth of damage to its body. It turns out that when Emma gave Richard the information over the phone, she had been looking at the wrong page of the brochure. Had she looked at the correct page, she would have seen that the D200 is not suitable for off-road driving.

Richard operates his business from a premises which he has leased from George for $ 5 000 per month since January 2016. The lease specifies that the rent is to be paid to George every six months and that it will increase every year by 10%. Richard pays George $ 30 000 in June 2016 and December 2016, but then tells George that he is having financial difficulties and needs every dollar he can to buy equipment. George says “OK, I will let you off paying the increase this year”. Richard is pleased with this, and uses the money he would have had to spend on the rent increase to buy new tools. In June 2017, Richard pays $ 30 000 to George, but George contacts him demanding an additional $ 3 000. When Richard refers to their earlier conversation, George says “Whatever I said, the lease you signed specifies that the rent will go up by 10% each year”.

Tom is a collector of vintage cars. He sees that Richard has a 1979 Mercedes 450SEL for sale on his website, priced at $ 20 000. Tom sends Richard an email saying “I offer to buy the 1979 Mercedes 450SEL for $ 18 500”. Richard sends an email back saying “Sorry, that is not enough, but I will sell it to you for $ 19 000”. Tom sends an email back saying “No, I can’t pay that”. Richard then sends an email saying “OK, I accept your original offer of $ 18 500”, but when he brings the car to Tom’s house, Tom refuses to accept it or to pay the money.

When Richard goes on holiday, Martin looks after his car lot. Martin doesn’t have a car. However, a friend of Martin’s is about to visit town and he wants to be able to drive her around. Martin goes to Richard and says “Can I hire one of your cars?” Richard says “The usual price is $ 50 per day, but because you looked after my car lot in August, you can hire it at no cost. You can pick it up on Monday”. Martin is very pleased and readily agrees, but when he comes to pick up the car, Richard says that he has hired it out to a customer. Martin says that Richard has breached their agreement.

Advise Richard of his legal position in relation to each of these four scenarios. You should assume that all facts given would be provable if the matters came to court. You should also assume that when any of the people mentioned conduct business, they do so as sole traders, not through corporations.

A. Issue Issue 1: Richard bought 4 shock absorbers adapted for off road driving for his jeep paying $480 on the suggestion of Emma, the manger of Shocks Are Us. However, when he went for a test drive the shock absorber failed and the car crashed. The damages amounted to $2000. Now, the question is who is liable to bear the loss. Moreover another issue is whether Richard is liable to get any compensation or not.

Issue 2: Richard has been paying a rent of $5000 per month to George as rent for using his premises. The rent is supposed to increase 10% at the end of every six months. However Richard confesses in June that he would not be able to pay the increment due to obscurities in his business, George allowed him the wave off. However, in June 2017, George rang up and demanded extra 4300 from Richard. He disagreed to confirm to any verbal contracts and stated that the specifications of the lease paper would hold. This may be considered a breach of contract.

Issue 3: In the third case Tom’s initial offer of $18500 is discarded by Richard initially. In turn he demands $19000. However when Tom confesses that he is unable to pay the amount, Richard agrees to accept his previous offer. Accordingly, he brings the car to Tom’s place. However, at that time Tom does not accept the car and refuses to pay any amount.

Issue 4: Since Martin looked after Richard’s car lot in august, Richard allowed him to borrow a car without paying. However, when martin goes to pick up the car, Richard says that it has gone on hire. Martin considers this a breach of contract 1 .

B. Laws As per the contracts Act 1999 (section 18A) and the Sale OF Goods Act 1979 (section 14) word of mouth may be considered as a contract. Breach of the contract is equally punishable like breach of written contract. As evident from the Air Studios (Lyndhurst) Limited T/A Entertainment Group v Lombard North Central PLC (2012), the loss amount is liable to be paid by the Shocks on Us company. As per the oral modification clause of the Word of mouth Law, Richard is liable to receive the compensation amount if he is able to substantiate his loss amount via written documents 2 .

Again, in the second case a reference from the Thomas KELLOGG v. Cindy SHUSHEREBA (2013) case may be considered. Oren was forced to pay the alleged amount in that case. By the standards of the case Landlord and Tenant Act 1985 (Section 18), Richard is liable to pay the extra $3000 if the house owner George approaches the court and disagrees any wave off agreement. However, in case if Richard can produce any witness of the verbal assurance of George, the payable amount for him may lessen 3 .

Thirdly the example of the Uber v Aslam case may be cited. The appeal of the Uber drivers did not stand in front of the employment tribunal. As per this case, the issue of not accepting the pre-booked product may be considered. The issue is that Tom did not sign any purchase clause with Richard. As per the Product liability and safety law it is essential to seal a contract with a buyer at the confirmation of the purchase. Since, this was not done; the court is more likely to reject Richard’s appeal if he rings the court 4 .

In order to shed light upon the final case the Bolton v Mahadeva [1972] case may be considered. The appellant, in this case, received the contracted value minus the cost of defects. Similarly, in this case, Martin may also appeal that Richard has not kept his words. However, considering the frivolity of the case, the judge may ask the accused and the appellants to solve the dispute among them.

C. Application In the first case the Contracts Law 1999 and the Sale of Goods act 1979 may be used. As per the section 3 of the Contracts law 1999, the promissory may save her in this case. However, according to the Section 2 of the Contract Law 1999, the third party that is Richard may apply that the liability of this loss lies entirely with the manager Emma. The section 5 and the section 8 of the law may also be applicable. In that case the manager has higher chances of winning this case 6 .

In the second case, as per the Article 3A of the Landlord and Tenant act 1985, Richard should have given a written notice at least to the house owner stating his financial problem. Since no evidence can be produced in favour of the verbal rent waving, the decision of the court is likely to go in the favour of the landowner 7 . Thirdly in the case of Tom’s not accepting the act or paying for it, the word of mouth that he had given will not be considered as unconditional assent as per the Contract Law of UK 8 . In this situation, the liability of bringing the car at the doorstep of Tom will completely rest with Richard. Finally, in the case of Martin, the verbal offer may also be accepted as a kind of Contract for consumer credit by the judge. In case if Martin appeals to the court, the verbal contract of Richard with Martin may gain ground. However, since this is s petty case, the court may suggest the mitigation of the case by mutual contract 9 .

D. Conclusion This project highlights four issues which come under various law acts under the jurisdictions of the British court. As such, the law acts that are applicable to this case have been highlighted and verdicts of other similar court cases have been analysed also. Under this circumstance, the primary laws that have been applicable are the English Contracts Law, the Sale of Goods Law and the Consumer Protection laws. The possible scenario if these issues were converted to court cases has been discussed in detail.

[1]'Contract Disputes - John Antell - Barrister' (Johnantell.co.uk, 2018) accessed 3 December 2017

[2]Air Studios (Lyndhurst) Ltd (T/A Air Entertainment Group) V Lombard North Central Plc [2012] EWHC 3162(QB) (09 November 2012)' (Bailii.org, 2018) accessed 14 November 2017

[3]Https://Assets.Publishing.Service.Gov.Uk/Media/5A046b06e5274a0ee5a1f171/Uber_B.V._And_Others_V_Mr_Y_Aslam_And_Others_UKEAT_0056_17_DA.Pdf (2018)

[4]'Findlaw's Supreme Court Of Vermont Case And Opinions.' (Findlaw, 2018) accessed 15 November 2017

[5]'Bolton V Mahadeva' (E-lawresources.co.uk, 2018) accessed 9 November 2017

[6]'Bolton V Mahadeva' (E-lawresources.co.uk, 2018) accessed 9 November 2017

[7] 'Private Renting - GOV.UK' (Gov.uk, 2018) accessed 30 November 2017

[8]'Electronic Law Journals - JILT 2002 (2) - Desai Et Al' (Warwick.ac.uk, 2018) accessed 17 December 2017

9Brown S Brown, 'Book-Smart, Not Street-Smart: Blockchain-Based Smart Contracts And The Social Workings Of Law' (Blockchain Ascending, 2018) accessed 14 October 2017

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CA Foundation Business Law Study Material Question Bank Pdf | CA Foundation Law Case Studies Questions with Answers

CA Foundation Business Law: If you want to learn the subjects and their concepts deeply then downloading the officially released CA foundation business law paper 2 study material is the best solution. Are you looking for the same in pdf format? You have stepped into the right place where you can acquire the pdf formatted Business law CA foundation program study notes along with the chapter-wise weightage details. Let’s dive in!

• ICAI CA Foundation Business Law Study Material
• CA Foundation Business Law Study Material
• CA Foundation Business Law Notes

Preparation Tips For Business Law CA Foundation Examination

• Where can you find the CA Foundation law chapter-wise questions and answers pdf?
• Which chapters are important in CA Foundation Law?
• How do I clear my CA Foundation law?

Important Case Studies for CA Foundation Law | ICAI CA Foundation Business Law Study Material

The institute of chartered accountants of India (ICAI) conducting body introduces the new syllabus and the exam resources for the respective students who have applied for the CA courses. CA Foundation is the first-level chartered accountancy course. CA foundation business law is the second paper in the CA foundation program. Students can benefit by downloading the ICAI CA foundation business law handwritten notes pdf provided here.

As it includes an explanation of the core concepts of the second paper in a comprehensive and friendly pattern. All foundation course candidates can understand and learn the subject so efficiently and can answer any type of question with confidence. Here, you can find the list of important questions with answers, MCQs with solutions, True and false type questions, and Important Case Studies for CA Foundation Business Law.

CA Foundation Law Case Studies Questions with Answers | CA Foundation Business Law Study Material

We have curated the list of unit-wise CA foundation business law written notes for revision here. It covers the revised syllabus and its core topics questions and answers along with tips to prepare and present the answers in the CA foundation paper 2A business law examination.

ICAI CA Foundation Law Study Material Unit 1 Indian Contract Act, 1872

• Nature of Contract
• Offer & Acceptance
• Capacity to Contract
• Consideration
• Free Consent
• Legality of Object & Consideration
• Void Agreements
• Contingent & Quasi Contracts
• Performance of a Contract
• Discharge of a Contract

CA Foundation Law Case Study Pdf Unit 2 Sale of Goods Act, 1930

• Formation of Contract of Sale
• Conditions & Warranties
• Transfer of Ownership
• Unpaid Seller

CA Foundation Law Question Bank Pdf Unit 3 Indian Partnership Act, 1932

• General Nature of Partnership
• Relations of Partners
• Registration of a Firm & Dissolution of a Firm

CA Foundation Law Questions with Answers Unit 4 Limited Liability Partnership Act, 2008

• Limited Liability Partnership Act, 2008

CA Foundation Law Case Study Questions Unit 5 Companies Act, 2013

• Companies Act, 2013

CA Foundation Business Law Notes | CA Foundation Paper 2A Business Law Study Material PDF Unit-Wise

Attain the unit-wise study notes of CA Foundation business law from below and start downloading them for free of charge. After downloading them do practice and study regularly from the provided study material and score well in the CA foundation paper 2A law examination.

CA Foundation Business Law Notes Pdf Unit 1 Indian Contract Act, 1872

• Nature of Contracts Notes
• Offer and Acceptance Notes
• Consideration Notes
• Capacity of Parties Notes
• Free Consent Notes
• Void Agreements Notes
• Contingent Contracts and Quasi Contracts Notes
• Performance of a Contract Notes
• Discharge of a Contract Notes

CA Foundation Law Handwritten Notes Pdf Free Download Unit 2 Sale of Goods Act, 1930

• Formation of Contract of Sale Notes
• Conditions and Warranties Notes
• Transfer of Ownership Notes
• Performance of a Contract: Delivery and Payment Notes
• Rights of Buyer & Rights of Unpaid Seller Notes
• Auction Sale Notes

Business Law Notes for CA Foundation Unit 3 Indian Partnership Act, 1932

• General Nature of a Partnership Notes
• Registration of a Firm Notes
• Relations of Partners Notes
• Reconstitution and Dissolution of a Firm Notes

CA Foundation Law Revision Notes Unit 4 Limited Liability Partnership Act, 2008

• The Limited Liability Partnership Act, 2008 Notes

Law Notes CA Foundation Unit 5 Companies Act, 2013

• The Companies Act, 2013 Notes

Do look at the attached link about the previous papers on paper 2A business law chartered accountancy foundation program ie., CA Foundation Business Law Question Paper , and practice more for scoring the best marks in the final paper.

CA Foundation Law Chapter Wise Weightage

For scoring great marks in paper 2 of the CA foundation, preparation is the first and standard step to follow. To make that preparation stage so smooth for every student, here are some tips that you should consider and do one after other:

• Initially, check the released exam schedule, exam pattern, new syllabus, sample and previous question papers, study material, and revision notes.
• Now, create your own study timetable by taking the help of the CA foundation law chapter-wise weightage.
• Answering the question in the correct way is more important so present it in 3 parts where the first group implies problem identification, the second is a legal solution, and then come with the conclusion part.
• Stick to the syllabus and complete all the concepts while preparing.
• Answer all the questions in mock test papers and fill the knowledge gap.

FAQs Related To Chartered Accountancy Business Law Study Notes PDF

1. Where can you find the CA Foundation law chapter-wise questions and answers pdf?

Gstguntur.com is the right place to find the CA Foundation business law chapter-wise questions and answers in pdf format.

2. Which chapters are important in CA Foundation Law?

In any paper of the CA foundation course, you will get to see some of the important chapters which help to score minimum marks. In the business law ca foundation paper, the chapters that are crucial are the Indian contract act 1872, The sale of goods act, the Indian Partnership Act, and the Indian Companies act.

3. How do I clear my CA Foundation law?

Planning the proper strategy and focusing on it will make sure to clear all the difficult examinations in your life. So, be on it and start preparation with good exam resources like CA foundation business law study material, MCQs, and important questions & answers.

Key Outcomes

Believing that the given information related to CA Foundation Law Study Material Pdf free download assists you in preparing for the exam and gaining knowledge. If you need any other guidance on the Chartered Accountancy Business Law study notes pdf, please drop your suggestion in the comments below and get the best solution. Be with us and check the latest updates on CA Foundation Study Material, New Syllabus, Suggested Books, etc.

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• Answering a legal problem - IRAC

Proper planning is vital to successfully answering a legal problem. Below are some hints and tools using a problem from Company Law.  When answering a legal problem, it is useful to apply the IRAC structure so that you address all areas required.

• IRAC structure

The IRAC method has four steps:

• Identify the issue
• Relevant law - Here you need to explain the law not just state it. This could be sections/s of the Corporations Act or case law
• Application to the facts - the law is applied to the facts of the problem

Use the following IRAC structure as a guide to answer case study questions.

• Issue: Define the legal relevant issue.
• Relevant law: Identify legal principles from cases and statutes. Explain the law, don't just state it.
• Apply to the facts: Develop legal arguments by applying the law to the facts.
• Conclusion: Arrive at a considered conclusion.

Note: Students gain the most marks by explaining the relevant law and then applying it to the facts.

Example question and answer

Bingo Ltd is a manufacturer of electrical goods. It entered into a contract with Melvin Ltd, a large discount retailer. Under this contract, Bingo Ltd was to supply its goods exclusively to Melvin Ltd. The directors of Melvin Ltd subsequently discover that a wholly-owned subsidiary of Bingo Ltd is selling identical electrical goods to competitors at cheaper prices. It appears that the subsidiary was incorporated to enable Bingo Ltd to avoid the effects of the contract with Melvin Ltd. Advise the directors.

(This a five-mark question)

Please note: This is a simple low mark answer (5 marks) to illustrate the use of IRAC only. Many Company Law problems will involve multiple issues. In these scenarios each issue would need to be addressed. For example: The first issue is... The second issue is whether...

1. Read the following question.

2. Now read the following text and try to identify the IRAC structure.  Check your understanding by clicking on the buttons to reveal the IRAC structure.

Read the following question, then identify which part of the IRAC structure best fits each text excerpt by selecting from the drop down menu.

• Writing case notes
• Writing a legal memo

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