Abena’s Case:

• Abena withdrew her offer or revoked it within the allowed waiting period of ten days from the date of the publication of the prospectus.
• Legal Reference: Section 281 (1) explains “the waiting period” to mean a period of ten days after the first publication of a registered prospectus or such longer period as may be stated in the prospectus. Section 281(2) of the Companies Act, 1973 (Act 179) clearly states that any application, offer, or acceptance by any person in response to an invitation to the public in respect of any securities of any public company shall be revocable by such person at any time prior to the expiration of the waiting period.
• Conclusion: Abena acted within her rights, and her withdrawal cannot be opposed by the company in any way.

(2 points @ 3.5 marks each = 7 marks)

Frank’s Case:

• Frank Larry’s situation involves the principle of the law of contract, which states that an offer must be accepted within a reasonable time if no particular period is stipulated for acceptance.
• The company took over 8 months to accept Frank Larry’s application, during which time no effort was made to get Frank to agree that his offer remained active.
• Conclusion: Frank’s application should be deemed to have lapsed due to the unreasonable delay, and his refusal to accept the allotment must hold.

(2 points @ 4 marks each = 8 marks)

Parentsgold Ltd’s Case:

• The company has no rights against either Frank or Abena.
• Obligation: Parentsgold Ltd is obliged to refund the application moneys paid by both applicants. Abena validly revoked her offer, and there was a lapse in the offer made by Frank Larry.
• The applicants may, by court order, demand interest on the monies.

(2 points @ 2.5 marks each = 5 marks)