1.Patrick incorporated his sole trader business, Patrick's Furniture, which manufactures high quality furniture, under the name Quality Furniture Ltd. He lent Quality Furniture Ltd 50,000 and owns 80% of its shares. He continued to insure the company's assets, including the factory building, in his own name, as he had always done prior to incorporation. On the night of 5 November, the factory was destroyed by fire.

Required:

(a)Analyse the legal position of the parties in this scenario and consider whether Patrick or in the alternative Quality Furniture Ltd could enforce the insurance policy. (15 Marks)

(b)Explain the circumstances in which the corporate veil can be lifted.(10 Marks)