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Assignment: Case Study 1: Gilford Motor Co LTD V Horne (1933) CH 935
Assignment: Case Study 1: Gilford Motor Co LTD V Horne (1933) CH 935
Issue No. 1: The British Court of Appeal held that the company was established to
evade Horne's contractual obligations. If a company is merely a means to evade
legal obligations, the court can reveal the corporate veil, although this is only in
limited and discrete circumstances.
Issue No. 2: In this case, the main concern is the restriction on personal trade. In
addition, this case is also known for expounding the concept of lifting the veil of
the company to expose fraud and to hold individual directors of the company
responsible for the wrongdoing they did under the guise of the company.
Issue No. 1: First, the court believes that the rules of the Supreme Court can be
applied to this situation. It is further believed that the accused company was
created by the respondant to evade the mask of fair eye recognition, and on this
basis, it is impossible to evade specific fulfillment requirements. Obviously, the
defendant controls the false company holding the property, so Lipman is the only
person who can fulfill the agreement.