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 Marks

Question 3

(a) Electronic evidence is a means by which the commission of some offences may

proved.

Required:

State five ways of authenticating an e-mail message. (5 marks)

(b) Section 3(1) of the Money Laundering (Prohibition) Act provides, inter alia, that

a Financial Institution and Designated Non-Financial Institution shall verify its

customer's identity before opening an account for, issuing a passbook to,

entering into a fiduciary transaction with, renting a safe deposit box to, or

establishing any other business relationship with the customer.

Required:

Explain the mode of verifying the identity of

(i) An individual; and

(ii) A corporate body.

(5 marks)

(c) Sunday is a dealer in Mercedes Benz cars spare parts. He purchased a

carton of piston and rings from Chukwuma, a seventeen-year old shop

assistant of Mr. Emeodi. Chukwuma, who was not in the shop when

Mr. Emeodi brought in the goods, gave Sunday a carton of Nissan car

piston and rings instead of that of Mercedes Benz. Sunday has just

discovered that the goods he bought on credit were not what he ordered

for. His counsel is of the opinion that there was no contract ab initio as

there are vitiating elements.

Required

Advise Sunday on the status of his contract with Mr. Emeodi.

(10 marks)