Ms. Uusiku posts a letter to TBA (Pty) Ltd with an offer to buy 1000 shares in the company. The directors agreed, and a letter informing her that the company would allocate the shares was posted in return. After they posted their letter of acceptance, but before she received their letter, she informs the company telephonically that she revokes the offer. Discuss the legal position of the parties.

Ms. Uusiku posts a letter to TBA (Pty) Ltd with an offer to buy 1000 shares in the company. The directors agreed, and a letter informing her that the company would allocate the shares was posted in return. After they posted their letter of acceptance, but before she received their letter, she informs the company telephonically that she revokes the offer. Discuss the legal position of the parties.

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter19: Governance And Regulation

Section: Chapter Questions

Problem 2QAP

See similar textbooks

Similar questions

On February 2, Phillips induced Miller to purchase from her fifty shares of stock in the XYZ Corporation for $10,000, representing that the actual book value of each share was $200. A certificate for fifty shares was delivered to Miller. On February 16, Miller discovered that the book value on February 2 was only $50 per share. Will Miller be successful in a lawsuit against Phillips? Why or why not?
Umar applied to a company to buy some shares in April and paid a deposit. He didn't hear anything from company until November when company sent him a letter of allotment as acceptance and a request for the balance. By this time, Umar had changed his mind and no longer wanted the shares. Question a. Is Umar bound to buy the shares? Why or why not?
Arthur makes a note payable to Bob. Bob negotiates the note to Carl, Carl to David, David to Elvis and Elvis to Fred. Fred, a holder in due course, sees that David, a friend, has endorsed the note. If he crosses off David's endorsement, it will have the effect of: A) discharging all parties. B) discharging David. C) discharging David and Elvis. D) discharging all but Arthur.
Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution of the firm. Duncan then offered to buy Anita’s interest in the partnership for $250,000. Anita refused the offer and told Duncan that she would take no less than $360,000. A short time later, James approached Duncan and informed him he had inside information that a proposed street change would greatly benefit the business and that he, James, would buy the entire business for $1 million or buy a one-half interest for $500,000. Duncan made a final offer of $350,000 to Anita for her interest. Anita accepted this offer, and the transaction was completed. Duncan then sold the one-half interest to James for $500,000. Several months later, Anita learned for the first time of the transaction between Duncan and James. What rights, if any, does Anita have against Duncan?
Spiderman offered, in writing, to sell Black Widow a piece of land for $200,000. Spiderman signed the offer and wrote that it was contingent on Black Widow accepting within 10 days. On day five, Spiderman received and accepted a better offer from Captain America and transferred the land to Captain America on that day. Black Widow, who didn't know about the sale to Captain America, called Spiderman on day seven and accepted his offer. Spiderman told Black Widow it was too late, that he got a better offer from Captain America, and that Captain America now owned the land. Black Widow sues Spiderman for breach of contract. Judgment for whom? Choose the best answer. a. Judgment for Black Widow, because Spiderman's offer was irrevocable for ten days, and Black Widow accepted on the seventh day b. Judgment for Spiderman, because her offer was revocable c. Judgment for Black Widow, because Spiderman's offer was in writing d. Judgment for Spiderman, because even if Spiderman is liable to Black…
After purchasing his shares, Tristan asks you to explain to him what the register of members is, what information is in that register, and whether all companies must keep one. Tristan is quite fascinated by the existence of a register and asks you whether he can inspect the one his details are recorded on and, if so, where can he find it. Tristan confides in you that if he can get access to the personal details of all his company’s members, he could then sell that information to commercial call centres and socio-economic survey research companies. Also, Tristan cannot understand why the court has sole power to correct any errors made on entries into the members register. Advise Tristan. specify ASIC rules
In May, Parr and Presba, while in the course of negotiations with Barker (a salesperson for Quaker Hill) to purchase plants and flowers, undertook to organize a corporation to be named the Denver Memorial Nursery, Inc. On May 14 and 16, Parr signed two orders on behalf of Denver Memorial Nursery, Inc., which, to the knowledge of Quaker Hill, was not yet formed, that fact being noted in the contract. A down payment in the amount of $1,000 was made. The corporation was not formed prior to entering into the contract because Quaker Hill insisted that the deal be concluded at once since the growing season was rapidly passing. Under the contract, the balance of the purchase price was not due until the end of the year. The plants and flowers were shipped immediately and arrived on May 26. The Denver Memorial Nursery, Inc., was never formed. Quaker Hill seeks to recover the unpaid balance of the purchase price from Parr and Presba. a. What are the arguments that Parr and Presba are personally…
Riya writes an email promising to sell her car to Manish for $500, and Manish replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays Riya and she gives him the title to the car. Manish and Riya have a(n) __________. a.) unilateral contract b.) implied contract c.) executory contract d.) executed contract
On June 1, 2005, Ahmad mailed a written offer to Zaid for the sale of an office building. The offer included an express term that it would expire on July 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On July 30, 2005 at 8:00 a.m., Zaid sent a written acceptance to Ahmad via Zaid’s personal messenger. However, the messenger was not able to deliver the acceptance until August 1, 2005. On August 2, 2005, Ahmad contacted Zaid, informing him that the acceptance had been delivered one day late. As a result, Ahmad refused to honor the acceptance. Which of the following is the most correct statement? Explain with the help of revelant section. a. There is no contract between Ahmad and Zaid. However, if Ahmad would have mailed the acceptance on July 30, 2005, a contract would have been created. b. There is a contract between Ahmad and Zaid. The moment that Masse gave the acceptance to the messenger, a contract was formed…
James Wane was offered to audit BMX Ltd for the year ended 30 June 2020. He had served as a Non-executive director of BMX Ltd until 30 June 2017 and his spouse currently owns 10,000 of the 100,000 outstanding shares of BMX. James Must: Select one:a. Discuss with the spouse about this offer. b. Accept the engagement and get the support of his spouse whenever necessary. c. Accept the engagement and remain silent. d. None of the given answers is correct.
D was tasked to buy all the coffee beans supplies for the partnership. The accountant of the partnership gave D P100,000.00. When D was about to pay the coffee beans, D found out that he was lacking P50,000.00. So that he will not be delayed in delivering the coffee beans, D gave an additional P50,000.00. What right can D avail to get back his P50,000.00? He has the remedy for accounting He has the remedy for return of the capital He has the remedy to file for reimbursement He has the remedy for information
For each of the following scenarios, answer these two questions: 1. Ďoes the contract fall under the provisions of the Australian Consumer Law (ACL)? (Answer 'yes' or 'no') 2. With reference to the ACL, explain why you said yes or no. a) Peach purchases a large silver and glass display cabinet for $32,00 for her clothing and jewellery shop. b) Maddy buys a second-hand BMW from her professor, Zoe, for $10,000. c) A large furniture company pays $9,000 for precious walnut timber to build a cupboard. d) Brittany buys herself a brand-new Corvette for her 21st birthday for $120,000. e) Oliver makes the winning bid of $5,000 for a set of golf clubs at a traditional auction.