1. Mr. X invited Mr. Y his business partner for X's sisters marriage. Y accepted the invitation in this ground X booked a table in a costly hotel where the marriage takes place. Due to some reason Y could not attend the function. What type of contact is this. Is this a valid contract. Justify your answer.
2. (a) Explain the term 'Judicial precedent' and state two of its

advantages. (5 marks)

(b) Kayode and Abinga had an agreement by which they contributed

N500,000 each as deposits for the purchase of spare parts. By the

agreement, they are to share the spare parts equally on continuous

basis. Kayode recently received a consignment of spare parts at the cost of

N600,000. Abinga demanded that the spare parts be shared equally with

Kayodeon the ground that, by their agreement, they are partners.

However, Kayode has sold two-thirds of the spare parts. Abinga,

therefore, demands an account from the Kayode of the sales by him of the

spare parts. Kayode insists that he cannot account to Abinga because they

are not partners.

Required:

Advise Abinga on the status of his relationship with Kayode.

(10 marks)

(c) The powers of the Board of Directors in running the company differ from

those of the General Meeting in nature and limit.

Required:

Explain succinctly the nature and extent of the powers of the Board of Directors.

3.a) Isokari agreed to sell a cocoa plantation to Niger Cocoa Processing

Industry Plc ("Niger") for N25 million. Just a few weeks after the

agreement, the price of cocoa increased globally. Isokari decided not to

sell the cocoa plantation to Niger any longer. Instead, Isokari formed

Isokari Global Merchandising Limited ("Iso Global") and sold the

plantation to it. Isokari and his wife are the only shareholders of Iso

Global.

Required:

As the Company Secretary of Niger, explain the legal issues and remedy to

the board of directors of Niger. (10 Marks)

(b) Kure, Falilat and Adakuagreed to form and finance an estate company to

be named KFA Limited. The company would have four other members.

The three were given various procurement assignments. Kure, who was

to buy a mini-estate for the proposed company, sold his estate in Ikeja to

it at a profit of N10 million. Falilat bought a Cinema Hall on Lagos Island

for the proposed company and got a personal discount of N2 million from

the transaction due to his exceedingly great negotiation skills. After the

incorporation of KFA Limited, Adaku learnt of the outcomes of the two

transactions, and has approached you for advice.

Required:

Advise Adaku on the issues and remedies involved, with the aid of

statutory provisions and decided cases.