Case study
Case Laws [All eompulsog (15 marks) Question 1 Customer X entrusts certain important documents for safe custody with its bank, Bank of Fiji. The bank keeps the documents in a wooden box. Later it is found that the documents were destroyed by white ants. (i) Discuss the legal position of Bank of Fiji, whether or not it can escape the liability under the contract of baihnent since the documents were damaged not by them but by a third party, in this case the ants; which was beyond their control. (5 Marks) Question 2 X bails certain quantity of \"rst grade" petrol to Y to be stored safely till the end of July, 2018. Y, without the consent of X mixes the rst grade of petrol with his own \"second grade\" petrol on lst August, 2018. When X asked Y for his rst grade petrol, Y tells him to take the bailed quantity of petrol out of the mixed petrol. X rened to take the mixed petrol, and instead claims the price of the \"first grade" petrol which is lower than \"second grade". Y refuses to compensate X for the above on the ground of \"impossibility of perfonnance\". a) Decide whether Y is liable to compensate X for the loss? (5 marks) Question 3 Ms X pledges a sewing machine with Bank of Fiji. Ms X applies for a loan of $40,000 and requests Bank of Fiji to allow the pledged goods to remain in his possession. Ms X further promises to hold the same good in trust for the bank and to handover the possession whenever demanded. (i) Identify the type of Lien in the above case? (2.5 marks) ii) Identify the parties from the above case. (2.5 marks) Instructions: 1. 6 Short Answer Questions Answer only 3 questions. 2. Three Case Laws- All compulsory 3. There are two types of submissions, you could upload your solution on the case study dropbox or just type directly on the online text box. Sh rtAnswcrs ueslions ti 1] l (15 marks) I. The Electronic Fund Transfer Code governs any funds transferred electronically, and one of the activity that it covers is when a bank electronic system or equipment is malfunctioned. Discuss whether the bank would be liable in the event of a system or equipment malmction. {5 marks} 2. State two ways in which a bailment may be terminated and give an example of each. (5 marks) 3. Briey explain the role of a Settlement Agent? (5 marks) 4. Briey distinguish between Right to set-off and Right to Combine. (5 marks) 5. The scope of the regulatory schemes depends upon two key factors; the nature of the product and the identity of the consumer. State two provisions whereby a person provides a 'nancial service' as stated under the Corporations Act. (5 marks) 6. Briey explain at least two elements of Bailment that will make the bailment contract valid and legally binding
