QUESTION ONE

a. Kaku had been a driver of a cargo vehicle. He loaded his vehicle with goods at Tamale for an owner resident in Takoradi. The cargo was a mix of tubers of yam, bags of charcoal, watermelon and tomatoes. In the course of the journey and while still far away from Takoradi, the vehicle broke down in the vicinity of a small town. The driver did all that he could to reach the owner of the goods by telephone and other means. He was however not successful. He therefore, disposed of all the goods by sale on the third day. Required:Explain the effect of the sale of the watermelon, tomatoes, the yams and the bags of charcoal on the agency relationship. (5 marks)

b. Eddie is the manager of A-LIFE shopping mall owned by Bertha. In January he is told by Bertha not to buy biscuit from a new company called Crunch Ltd, because she has heard that their products are of poor quality. On 18 th February Christa, a representative of Crunch Ltd visits the A-LIFE shopping mall and as a result Eddie orders 10,000 cedis worth of biscuits. Christa is unaware of Bertha's instructions. When later in the day Bertha discovers what Eddie has done, they have arguments and Eddie resigns. The following day Eddie goes to Drinkit Ltd, Berthas regular supplier of wine and spirit and purchases 10 cases of whisky on credit in Bertha's name. He then absconds with the whisky. Bertha comes to seek your advice as to her liability to: Crunch Ltd; and Drink it Ltd. (5 marks)

c. In January, Asonto was travelling to Kumasi from Accra on a Yutong bus. Unfortunately, immediately after Anyinam the bus broke down. Asonto was desperate to get to Kumasi at all cost since he was attending an interview for appointment the next morning. Around 10 p.m. a cargo truck belonging to Samo Ltd. pulled by and Asonto begged the driver to give him a lift to Kumasi. The driver was reluctant and pointed out an inscription in the cab of the truck "Goods only. No passengers allowed" After some persistence the driver allowed Asonto on the truck. Unfortunately, just after Juaso the truck was involved in an accident and Asonto broke his leg. He has brought action against the company for compensation for the injury he sustained. What defence if any is the company going to put up? (5 marks)

d. Cho instructs his agent Duu to sell his car. Cho decided to pay GH5,000 as commission to Duu on completion of the sale. Duu sold the car and was accordingly paid the commission of GH5,000. Cho then immediately found that the purchaser of the car had also paid a bribe of GH2,500 which Duu did not disclose. Required: Explain the principle in law of agency applicable to this scenario. (5 marks)

e. Komosa Limited entered into a Hire- Purchase agreement with Mr. Gyeabour over a car. The agreement was to last for a period of 4 years of monthly instalment. The instalment arrangements went on for three and half years till Mr.Gyeabour decided to terminate the arrangement and stopped paying the instalment. For the remaining period, the Company had no news of Mr. Gyeabour or the car. When the car was later found, the air conditioning compartment was in a bad state of disrepair. The Company now intends to sue Mr. Gyeabour who has resurfaced. Mr. Gyeabour is now pleading with the Company for mercy.

Required:

i) Describe TWO basic requirements that should be outlined in a Hire Purchase Agreement. (2marks)

ii) Explain to Mr. Gyeabour TWO steps he should have taken in respect of the termination the damaged car under the Hire-Purchase Act, 1974 NRCD 292. (3 marks) [5 marks]

f. Yaa Konadu purchased a car from Kofi Apenteng, two months later, it was discovered that the car was a stolen property before it was acquired by Apenteng and both parties were innocent. Konadu had to give back the car through the police. Apenteng had no title to pass on and so Konadu sued him for the refund of the whole of her money despite the fact that she had used the car for two months. Advise the parties.

QUESTION TWO

Mr. Bossman bought a Nissan diesel vehicle from Trans Africa Engineering and Motor Co. Ltd. However, when the vehicle broke down, Mr, Bossman did not go to the dealers for spare parts, but rather went to Messrs Jones Williams &Co, and through one of its directors, placed an order for the spare parts from Japan. The order was placed for the spare parts with TSS Co. Ltd, and by Telex, headed "we quote for Japan", TSS Co Ltd, supplied Jones Williams & Co. with the requisite quotation, and that the spare parts would be delivered in three (3) months' time. Mr. Bossman then got his foreign bankers to transfer the amount, being the cost of the spare parts to the bankers of Messrs Jones Williams & Co. Ltd, who in turn, paid the amount to the suppliers. When the spare parts were not forthcoming, Mr. Bossman sued Messrs Jones Williams & Co for the return of his money, interest and damages. Before the court case started, Mr. Bossman received the spare parts, and therefore had to abandon his claims. Advise Mr Bossman