— |) INSTITUTE OF PROFESSIONAL STUDIES (IPS), LEGON DEGREE PROGRAMME END OF FIRST SEMESTER EXAMINATIONS- 2006/2007 LEVEL 200 PBMK 211 BUSINESS LAW EXAMINATIONS. Date: 19" January, 2006 TIME ALLOWED: 2 HOURS Mores, INSTRUCTIONS: REP Ee CX I Cay 7 C8 ay Coy * ANSWER ALL QUESTIONS IN SECTION ONE Ran y * ANSWER ANY ONE QUESTION FROM SECTION TWO. * SECTION ONE CARRIES 40 MARKS AND SECTION TWO CARRIES 30 MARKS THE QUESTIONS 4 SECTION ONE: COMPULSORY 1, State any three elements that make up (a) a binding agreement { 3 marks} (b) a binding promise { 3 marks} 4 2. state any three types of authority that an agent may have { 3 marks } state any three elements that make up the common law of Ghana { 3 marks} 4. In what three circumstances may a person who is not the owner of goods sell | those goods so as to lawfully transfer property in them to a bona fide buyer { 3 marks} }t 43 5. distinguish between (a) an offer and an invitation to treat {2 marks} (b) an acceptance and a counter offer { 2 marks} 6. A counter offer never leads to the formation of a contract. Comment on this statement. { 2 marks} 7. What principle of law is contained in the decision of the court in the case of (a) Felthouse v. Bindley? { 1 mark} (b) Merrit v. Merrit?_{ Imark} 8. Explain the legal effect of an agreement between two people, with the intent to create legal relation, to do or not to do a specified thing? {2 marks} 9, Explain the nature ofan agency relationship? {2 marks} 10. Explain the Nemo dat quod non habet principle in relation to sale of goods contracts. { 2 marks} ©F PROFEDSIONAL STUDI BOX 149 LEGON YERENOB LIBRARY (a) The transfer of property in goods from a seller to a buyer {2 marks} 11, state any two rules relating to (b) The transfer of risk in goods from a seller to a buyer { 2 marks} 12. What two courses of action are available to a buyer in a contract of sale of goods where the seller delivers goods of the wrong quantity? {2 marks} 13. Explain how legally significant an agent’s authority is when the agent deals with other persons on behalf of his principal. { 2 marks} SECTION TWO: ANSWER ANY ONE QUESTION L (a) Abena contracted to buy a stereo from Rita for one million cedis. The parties agree that the price be paid in two equal installments, but that ‘Abena may take stereo before she makes the first installment payment. Abena agrees to take the stereo. However before Abena could put the stereo in her car thieves, in a Hollywood style, took the stereo away. (i) Identify the legal issue (s) that arise from the facts of the case,5- (ii) Explain the law relating to the legal issue(s) that you have identified and (ii) Indicate whether the circumstances of the case and in the light of the law Abena is still obliged to pay the price { 30 marks} aarirots op P.O, BOX 149 LEGOn (a) Agnes Aryee is REVSRENGH hOARMORIR, in the Western Region. She engaged Callis Kumi a graduate of the Institute of Professional Studies (IPS) to sell three of cars,for him. The terms of the engagement state that each of the vehicles should not be sold below eighty million cedis and that Callis Kumi is entitled to a ten percent commission on each of the cars that he is able to sell. Callis Kumi who has always wanted to buy a car for himself got attracted by one of the three vehicles that he has been engaged by Agnes Aryee to sell. Without informing Agnes Aryee about his wish to buy one of the vehicles, Callis Kumi bought the vehicle for himself at eighty five million cedis. ‘Agnes Aryeelater leams of Callis Kumi buying the vehicle for his own use and gets furious that Callis Kumi did not inform him before selling the vehicle to himself, Agnes Aryee threatens to withhold Callis Kumi’s commission and to rescind the contract by refunding to Callis Kumi and retrieving the vehicles from him, Calis Kumi on the other hand argues that he has done nothing wrong and that Agnes Aryee is not in law entitled to take any of the steps he has threatened to take. Discuss the law relating to the facts of the case and on the basis of the law advice the parties. (30 marks} GOOD LUCK, FRIENDS!!!