Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Adzoe acting for and on behalf of Maclean, was authorized to purchase corn worth Two Thousand Ghana Cedis (GH¢2,000) for Makafui. Adzoe bought the corn in Makafui’s name at Two Thousand Five Hundred Ghana Cedis (GH¢2,500), which was clearly beyond his authority. Maclean was to ratify. Makafui then failed to take delivery of the corn.
Required:
i) Explain whether Maclean would be justified in ratifying the transaction entered by Adzoe and Makafui. (6 marks)
ii) Explain the concept of “Agency of necessity”. (4 marks)
Find Related Questions by Tags, levels, etc.
Jabi is a partner of an Accounting Firm. The firm’s office is located in Accra. In May 2019, Jabi was assigned an approved accounting duty outside Accra with the use of the Firm’s car. During the journey, the car had a burst tyre. The driver of the car, for unexplained reasons, had no spare tyre on the car. He therefore recommended the purchase of a brand new tyre, which Jabi bought with his personal money. He obtained a receipt in the name of the Firm.
Jabi sought for a refund of his money amounting to GH¢1,280 for the tyres bought. The Managing Partner refused the refund, saying it was the sole responsibility of Jabi to bear the expenditure.
Required:
i) Advise the Manager as to why the Firm should bear the full or part of the cost and not only Jabi.
(4 marks)
ii) Advise Jabi why it is not the sole responsibility of the firm to bear the cost.
(6 marks)
Find Related Questions by Tags, levels, etc.
Yaa Konadu purchased a car from Kofi Apenteng. Two months later, it was discovered that the car was 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, 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.
Required: a) Explain if the object of the sale of the car was met for either Yaa Konadu or Kofi Apenteng.
(4 marks)
b) Advise the parties.
(6 marks)
c) Explain FOUR (4) duties of an agent to his principal.
(10 marks)
Find Related Questions by Tags, levels, etc.
Fiko in Cape Coast appointed Pinfa at Takoradi (Cape Coast and Takoradi all in the Republic of Ghana) as his agent. Pinfa had the authority to contract with farmers for the cultivation and supply of tiger nuts on his behalf. While the agency relationship exists, Pinfa contracted with Agya Anto for the supply of 10 bags of tiger nuts without disclosing the existence of the agency relationship with Agya Anto.
Required:
i) Has Fiko any right to step in the contract between Pinfa and Agya Anto? (4 marks)
ii) Has Agya Anto any available right in his contract with Pinfa while he (Pinfa’s) agency with Fiko exists? (3 marks)
Find Related Questions by Tags, levels, etc.
a) Cho instructs his agent Duu to sell his car. Cho decided to pay GH¢5,000 as commission to Duu on completion of the sale. Duu sold the car and was accordingly paid the commission of GH¢5,000. Cho then immediately found that the purchaser of the car had also paid a bribe of GH¢2,500, which Duu did not disclose.
Find Related Questions by Tags, levels, etc.
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 18th 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, Bertha’s 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:
a. Crunch Ltd; (10 marks)
b. Drinkit Ltd. (10 marks)
(Total=20 marks)
Find Related Questions by Tags, levels, etc.
a) Who is a general agent? (2 marks)
b) Who is a special agent? (2 marks)
c) 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:
i) Explain the effect of the sale of the watermelon, tomatoes, the yams, and the bags of charcoal on the agency relationship. (10 marks)
ii) What are protected goods in the sense of hire purchase? (6 marks)
(Total: 20 marks)
Find Related Questions by Tags, levels, etc.
Joe Ocran intended to sell two storey buildings. He agreed with Tawiah, an estate agent, that he would pay commission ‘on completion of sale’. Tawiah introduced a third party who wanted to buy both storey buildings, but Joe Ocran changed his mind and refused to sell. Tawiah is your neighbor who has heard you are reading a professional programme that contains business law. He is contemplating suing Joe for the commission and has approached you for advice.
Required:
Advise the parties whether there was a contracted relationship.
(5 marks)
Find Related Questions by Tags, levels, etc.
Kwei Aglote is an agent of Batis Brown, the principal. Kwei Aglote has actual authority to contract for his principal Batis Brown on specific items. Kwei Aglote enters into contractual relations with Ogyeene Baby for the supply of cassava flour (kokonte powder) worth GH¢20,000. Aglote disclosed his agency relationship with Batis Brown to Ogyeene Baby. The principal has failed to pay for the cost of the goods supplied. Despite the explanation, Ogyeene Baby says he knows no one else but Kwei Aglote who must pay for the cost of the goods.
Required:
i) Explain actual authority under the agency relationship. (5 marks)
ii) In the above scenario, who bears liability for the cost of the goods? (5 marks)
Find Related Questions by Tags, levels, etc.
A firm of chartered accountants prepared the financial statements of Highskies Ltd knowing that the company was going to use the report to persuade Dr. Kwesi Antwi, a prospective investor, to invest money in Highskies Ltd. Relying on the accounts, Dr. Kwesi Antwi invested two million Ghana Cedis (GH¢2,000,000) in the company. However, a year later, the company collapsed. Dr. Kwesi Antwi, therefore, decided to take legal action against the firm of chartered accountants.
Required:
i) Advise whether Dr. Kwesi Antwi’s legal action in court will be successful. (3 marks)
ii) State THREE (3) effects of an agent acting without authority. (6 marks)
iii) Explain the phrase “term of Contract.” (3 marks)
Find Related Questions by Tags, levels, etc.
Elevate your professional expertise across key business domains with our comprehensive training programs
Follow us on our social media and get daily updates.
This feature is only available in selected plans.
Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.
If you’re not subscribed to a plan, click on the button below to choose a plan