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Question 1 Andrew and Cathryn Sims are a married couple and partners in a business that sells video games hardware and software. The business proves

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Question 1 Andrew and Cathryn Sims are a married couple and partners in a business that sells video games hardware and software. The business proves to be extremely successful, and they open up a number of branches. In order to limit their liability, they instruct their solicitor to incorporate the business, calling the new company Sims Gaming Ltd. Around the same time, MicroTech is about the release a new games console - the GamePlayer. Andrew and Cathryn are keen to acquire as many of these consoles as possible. Andrew hears of a potential source (Halo Ltd) and is offered fifty consoles. Eager to purchase the consoles, Andrew does not wait until the company is incorporated and enters into a contract with Halo Ltd 'for and on behalf of Sims Gaming Ltd. Cathryn is also offered a number of consoles and, prior to the company being incorporated, she enters into a contract with Players Ltd for forty consoles. She signs the contract 'Sims Gaming Ltd pp. Cathryn Sims (a director).' The certificate of incorporation is issued and, at the first board meeting of Sims Gaming Ltd, Andrew and Cathryn ratify both contracts. Andrew and Cathryn both have extensive software libraries. Andrew sells to Sims Gaming Ltd a number of games that he acquired prior to engaging in the company's formation. Cathryn sells to the company a number of games that she acquired whilst the company was being formed. Shortly thereafter, Halo Ltd refuse to sell Andrew the fifty consoles promised, as it believes that it can sell all the consoles to the public for a higher price. Cathryn is concerned that Players Ltd will also refuse to sell the forty consoles promised. A shareholder of Sims Gaming Ltd, William, discovers the above and seeks your advice regarding whether or not any breaches of the law have occurred. Would your answer differ if Sims Gaming Ltd had been an off the shelf company purchased by Andrew and Cathryn? (50 marks)

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