BUAD 808 (BUSINESS AND COMPANY LAW)

1. Babu Sa'a Co. Ltd purchased two cars from Maikyau Motors at the rate of Ten Million Naira for the purpose of running its business. The cars were inspected and identified by Babu Sa'a Co. Ltd for the purpose of the said contract. After paying for the said cars, Babu Sa'a Co. Ltd sent its drivers to collect the keys to the cars including all the necessary documents in respect of the cars and to drive the cars away from the car stand of Makyau Motors. After collecting the keys to the said cars including the documents thereof and when about to drive the two cars away from the car stand of Maikyau Motors, thunder struck and destroyed the two cars.

A.Does this qualify as a contract of sale of goods? ( 1mark)

B.What is the consideration furnished by Babu Sa'a Co. Ltd in respect of the contract in issue? ( 1mark)

C.As at the time the thunder struck, do you think the property in the goods had passed to Babu Sa'a Co. Ltd? ( 1mark)

D.In law, can Babu Sa'a Co. Ltd ask for the replacement of the damaged cars from Maikyau Motors? (1 mark)

1. Patara Co. Ltd is into bakery but has no motor vehicle with which to make supplies to its numerous customers. Consequently, Patara Co. Ltd agreed with Alfarma Motors in writing, on the following terms:

"Patara Co. Ltd will take possession of a Hilux van with chassis number 22222 for the purpose of its business but upon payment of monthly installment of Thirty Thousand Naira as charges. It is agreed that Patara Co. Ltd upon successful completion of payment of monthly installments for Thirty Six months, becomes the owner of the said Hilux van."

A.What kind of agreement is this? (2 marks)

B.Suppose Patara Co. Ltd on its own returns the Hilux van at the 29^th month of payment by installment, can it ask for a refund of any installments so far made? (2 marks)

C.If for example, within six months into the agreement, Patara Co. Ltd defaults in the payment of monthly installments can Alfarma Motors, in law, recover possession of the Hilux van? (2 marks)

1. Ojukwu bagged his MBA Degree from Ahmadu Bello University in 2010. Since then, he has vowed to put his business knowledge into practice. He is a wise businessman who knows his onions. He is a money magnet and has the ability to turn trash into treasure. On the 30^th day of October 2018, Alh. Ojukwu saw a truckload of pepper ready to be sold at a very cheap price of Ten Thousand Naira only by one Mallam Kayanmiya .He saw this as an opportunity to buy same and make good profit, but he had no liquid cash on him. Also, he did not carry his cheque book with him. However, he quickly brought out his pen and paper and wrote thus: "I Alh. Ojukwu, agrees and promises to pay to Mallam Kayanmiya the sum of Ten Thousand Naira only for value received on or before the 30^th day of November, 2018.If this note is in default and is placed for collection, I shall pay all reasonable cost of collection ...".Thereafter, the instrument was given to Mallam Kayanmiya.

A.What kind of negotiable instrument was issued and executed by Ojukwu? (5 marks)

B.Between Alh. Ojukwu and Mallam Kayanmiya who is the payee in relation to the instrument? (2 )

C.Can Mallam Kayanmiya in law negotiate the said instrument to a third party? ( 2 )