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)

Question 2

11. The appointment of a director of a company at a general meeting is by

A. Extra-ordinary resolution

B. Ordinary resolution

C. Special resolution

D. Business resolution

E. Director's resolution

12. The Financial statements of a company shall include the following except

A. The balance sheet as at the last day of the year

B. Aprofit and loss account, or in the case of a company not trading for

profit, an income and expenditure account for the year

C. Notes on the account

D. Auditors' reports

C. Audit Committee's report

13. Under the Money Laundering (Prohibition) Act except in a transaction

through a financial institution no corporate body shall make or accept cash

payment of a sum greater than

A. N500,000

B. N1,000,000

C. N5,000,000

D. N7,500,000

E. N10,000,000

14. Agency of necessity may be created in all the following circumstances

except where it is

A. An emergency

B. Impossible to communicate with the principal

C. Retain customers

D. An action in good faith

E. To prevent irreparable loss

15. The rights of a buyer of goods include the following except

A. Action for damages for non-delivery

B. Specific performance

C. Stoppage in trasitu

D. Action for detinue

E. Repudiation

16. The hirer in a contract for hire purchase has the following rights except

A. Use the goods

B. Quiet possession of the goods

C. Know the exact instalments to be paid

D. Choose the insurer if the goods is motor vehicle

E. Repossess the goods

17. In law, no one has an insurable interest in

A. His own life

B. The life of his spouse

C. The assets of a company in which he is a shareholder

D. An event the loss of which will prejudice him

E. A personal building

18. Which of the following are parties to a cheque?

A. The bank and its customer

B. The drawer and the drawee

C. The bank, drawee and payee

D. The drawee, payee, and drawer

E. The bank, its customer and the drawer

19. Which of the following is NOT a duty of a personal representative?

A. Gathering and realization of assets

B. Application to court

C. Payment of debts and other liabilities

D. Payment of estate tax

E. Compounding of assets

20. A non-adversarial process through which parties to a dispute seek

amicable settlement is referred to as

A. Mini-trial

B. Conciliation

C. Arbitration

D. Negotiation

E. Ombudsman