Question
OPEN-ENDED QUESTIONS Question 1 (a) Explain the term 'Judicial precedent' and state two of its advantages. (5 marks) (b) Kayode and Abinga had an agreement
OPEN-ENDED QUESTIONS
Question 1
(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. (5 marks)
Total 20 Marks
Question 2
(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.
(10 marks)
Total 20 Mark
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