Alan and Cath.docx
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Alan and Cath.docx
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AlanandCath
AlanandCath
Domestic/Socialagreement
Itispresumedthatthereisnointentiontobeboundunlessitcanbeshownotherwise.
BalfourvBalfour
JonesvPadavatton
MerrittvMerritt
Commercialagreement
Itisstronglypresumedthatthereisintentiontobelegallyboundunlessitcanbeshownotherwise.
EdwardsvSkyways
RoseandFrankCovCromptonBros
Applyingtheabovelawtothefactoftheproblemscenarioleadstothefollowingresult:
ThissituationissimilartothatinMerrittvMerrittandCathwouldbeabletoenforcetheagreementforAlantopassthetitle.Theusualpresumptionofdomesticagreementcouldberebuttednotjustbythefactthattheyareseparating,buttheagreementwasreducedtoawrittendocument
Adam
InthecaseofFoakesvBeer1884thecourtaffirmedthedoctrineofpart-paymentthatpaymentofasmallersumdoesnotdischargeadebtofthegreateramount.Howevertherearefourexceptions:
-part-paymentmadebythirdparty
-compositionwithcreditors:
allcreditorsagreetoreceiveasmallerpart
-accord(thetwopartiesagreefreelytogetless)andsatisfaction(paymentatadifferenttimeorplaceorindifferentcurrency)
-promissoryestoppel
PromissoryEstoppel
Thisisanequitabledoctrine.Itistopreventapersongoingbackonhiswordstoacceptalesseramountatleastforaperiodoftime.
CentralLondonPropertyTrustLtdvHighTreesHouseLtd1947
Thisdoctrineisrarelyappliedintheenglishjudiciarysystem.Whenapplied,ithasthefollowinglimitation:
-itisashieldnotasword,adefencenotacauseofaction
-itonlyhassuspensoryeffect
-thepartyrelyingonitmustalsoactinaccordancewiththeequitabledoctrine
Applyingtheforegoinglawsintothefactoftheproblemleadstothefollowingresult:
1.Dawn’scasecanbeagoodexampleofpromissoryestoppel.Asestoppelisonlyeffectiveinaperiodoftime,Adamcouldretracthispromiseandrecoverthefullamount.SecondlyDawnisnowcapableofpayingthemoney,soitwouldbeunfairundertheequitabledoctrineifshedoesnotpay.
2.Eric’scaseisnotapart-paymentproblem,butabreachofthecontract.HisbehaviourviolatestheContractlawandAdamcouldgetthefullpayment.
Dismissal
Constructivedismissalappearswheretheemployeeterminatesthecontractbyreasonoftheemployer’sconduct.
Thisisansignificantbreachoftheemployer.Insuchsituationtheemployeeisentitledtomakeaclaimfortheunfairdismissalnomatterthefactthathehadresigned.
Iftheemployeedoesnotresign,hecouldbedeemedtohaveacceptedthebreachandwaivedanyrights.
Remedies
Inrelationtoasuccessfulclaimfordismissal,thefollowingremedieswouldbepossible:
Reinstatement:
resumptionofworkasthoughtherehadbeennobreak,andnullifiedtheeffectofdismissal.
Re-engagement:
re-employmentoftheemployeeunderanewcontractofemployment
Compensation:
Basicaward:
basedontheage,weeklypayandlengthofemployment
Compensatoryaward:
withinthetribunal’sdiscretionary
Additionalorhigheraward
AgencyRelationship
Theprincipleandagentrelationshipcanbecreatedinanumberofways:
Byagreement:
Expressagreement:
actualappointmentbywrittenororally
Impliedagreement:
impliedbyparty’sconductorrelationship
ByNecessity:
Agencyrelationshipbynecessityoccurswhenemergencyrequirestheagenttotakeparticularactioninordertoprotecttheinterestsoftheprincipal,thoughthereisnoagreementbetweenparties.
Theconditionsofprincipalare:
Principal’spropertyisinpossessionofagent
Emergencymakesagent’sactionnecessary.
Impossibletocommunicatewithprincipal
Agentactsinbestinterestofprincipal
Byratification.
Theprincipalcanratifytheactionofanotherpersontocreateanagencyrelationshipaftertheevent.Thishasretrospectivevalidityandtheagentisrelievedfromanyliability.
Theconditionsofprincipalare:
Capacity:
capacitytoenterintocontract
Existence:
existedwhenthecontractandratificationaremade.
Identification:
beidentifiedwhenthecontractismade.
Legality:
Awarenessofallmaterialfacts
Ratifywithinareasonabletime
ByEstoppel
ThisisknownasAgencybyholdingout.AgencyrelationshipbyestoppelariseswheretheconductoftheprincipleimpliesthatAishisagenteventhoughheisnot.Theprincipalisthusbound.
Theconductsare
Failstonotice
Agreestoappeartohavemoreauthoritythanactualone
DoctrineofSeparatePersonality
Acompanyisaseparatelegalentitywhichisseparatefromitsshareholders,directors,managersandemployees.ThecaseusuallycitedinrelationtothedoctrineisSalomonvSalomon&CoLtd1987
Theconsequencesofincorporationare:
Limitedliability:
themembersarenotresponsibleforthecompany’sdebtswithoutagreements
Legalcapacity:
thecompanycanenterintocontract,sueandbesuedinitsownname
Thecompanycanbeliableforitsowndebts.
Separationofownershipandmanagement
PerpetualSuccession:
asthecompanyexistsinitsownname,rightchangesbetweenshareholderhavenoeffectonitsstatusorexistence.
Ownitsproperties:
propertiesisownedseparatelyandindependentlybythecompanybutnotthesharholders.
Liftingtheveilofincorportion
Incertaincircumstances,thecompanyistreatedasinsomedegreetoidentifiedwithitsmembersormanagersasthoughthereisnodistinctionbetweenthem.
Consequences:
themembersormanagerscouldbeliableforthecompany’sdebts.
Suchsituationsarisesasfollows:
Statutoryexamples:
Wrongfultradingandfraudulenttrading:
ifthedirectorisdisqualifiedorwrongfultradingexist(InsolvencyAct1986;CompanyDirectorsDisqualificationAct1986)
Tradewithoutcertificate:
thedirectorisliableforanyloss
Caselawexamples:
Groupcompany:
inthecaseofDHNfooddistributors,thecourttreatedtheseparatecompanyasasinglegroupbasedonagencyrelationshipandwiththedoctrineofeconomicsreality.Butmorerecentcaseshowsthatthecourtismorereluctantwhenliftingtheveilofincorporation.AdamsvCapeindustries1990
Shamcompany:
amerefacadeconcealingthetruefacts.WoolfsonvStrathclydeRegionalCouncil1978
Capital
Capitalofalimitedcompanyisregardedasaguaranteeorabufferforthecreditors.
Oncethecapitalisraised,itmustbemaitained,whichincludessharecapital,sharepremiumaccountandcapitalredemptionreserve.
Purpose
TheEssentialwaytoprotectthecreditorsofthecompany
Thetwokeyaspectsofthisdoctrineis
Thecreditorscanseethatthecapitalisnotdissipatedunlawfully
Theshareholdersmustnotreturnthecapitalbacksecretly
Therearespecificcontrolovercapital,includingrulesinrelationtocapitalreductionandcompanydistributions.
CapitalReduction
-companycanreduceitscapitalatanytimeaccordingtoCA06
-companycanreducethecapitalby:
Cancellationofliabilityofpartly-paidshares
Cancellationofpartofthevalueofpaid-upshares
Returnthecapitalinexcessofthecompany’sneed.
Theprocedureis
Publiccompany:
specialresolution;applytocourt;listcreditors;creditors’consent;resolutiondelivertoRegistra
Privatecompany:
specialresolutionwithsolvencystatementforthefollowing12months;delivertoRegistrawithin15daysfrompassingtheresolution
DirectorDuties
Thedirectormustactinthewaymostlikelytopromotethecompanyforbenefitofmembersasawhole.
Thedutiesofdirectorsare:
Dutytopromotethesuccessofthebusiness,actualdecisionmustbetakeningoodfaithbydirectors.
Dutytoactwithinpowerorconstitution
Dutytoexerciseindependentjudgment.
Dutyofskillandcare:
Notboundtogivecontinuousattention
Delegationtoemployee
Dutytoavoidconflictofinterests
Dutynotoacceptbenefitfromthirdparty
Dutytodisclosureinterestconcerned.
Thedutyofdirectorsareowedto:
Thecompany:
Owedutytocompanyasawhole
Themembers
Owedutytomembersasawhole
Nodutytoindividual.
RoleofCompanyAuditors
Auditorsareappointedtoensuretheinterestsoftheshareholdersofthecompanyarebeingmet.Theirkeyfunctionistoproducereportcomfirming.
Qualification
Canbeapersonoracompany
Musthaveprofessionalaccoutancyqualification
Amemberofrecognisedsupervisionbody
Amemberofaoverseabodyauthorizedbythegovernment
Independentfromthecompany,mustnotbe
Anofficerofemployeeofthecompany
Parnerofanofficeroremployeeofthecompany
Itisacriminaloffencetoactwhilstineligible
Appointment
Byordinaryresolutionbyshareholders
Firstandcasualvacancybydirectors
SecretaryofState.
Removal
Atanytimebyordinaryresolutionwithspecialnotice.
Entitledtomakeawrittenrepresentationandhavethemcirculatedorreadoutatthemeeting.
DelivertoRegistrawithin14days
Resignation
Atanytimewithnotice.
Mayrequirethemembersofthecompanytocallameetingtoexplaincircumstancesneedattention.
Rights
AttendtheGM
Accesstoaccountingbooksatalltimes
Accesstoanyinformationandexplanations
Receivecopiesofwrittenresolution
Duties
Dutytoreport:
Whetherthecompanyaccountingreporthasbeenproperlyprepared
Whethertheindividualcomapnyandgroupaccountshowatrueandfairview
Dutytoinvestigate:
Whetherthecompanykeepanadequateaccountingrecordandobtainadequateaccountingreturns.
Whethertheaccountisinagreementwiththerecord
Whethertheyobtainallinformationandexplanationsnecessary.
Dutytogivereasonalbeskillandcare
Dutytogiveparticularstodirectors’activitiesandtransactions.E.g.loan,emolumentetc.
Bindingprecedent
Thedoctrineofbindingprecedent,orstaredecisis,
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